FAC Explorer

Audit 353264

FY End
2024-06-30
Total Expended
$9.96M
Findings
20
Programs
7
Organization: Falmouth Housing Authority (MA)
Year: 2024 Accepted: 2025-04-10
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554540 2024-002 Significant Deficiency - A
554541 2024-004 Significant Deficiency - L
554542 2024-002 Significant Deficiency - A
554543 2024-004 Significant Deficiency - L
554544 2024-002 Significant Deficiency - A
554545 2024-004 Significant Deficiency - L
554546 2024-002 Significant Deficiency - A
554547 2024-003 Significant Deficiency - H
554548 2024-004 Significant Deficiency - L
554549 2024-005 Significant Deficiency - L
1130982 2024-002 Significant Deficiency - A
1130983 2024-004 Significant Deficiency - L
1130984 2024-002 Significant Deficiency - A
1130985 2024-004 Significant Deficiency - L
1130986 2024-002 Significant Deficiency - A
1130987 2024-004 Significant Deficiency - L
1130988 2024-002 Significant Deficiency - A
1130989 2024-003 Significant Deficiency - H
1130990 2024-004 Significant Deficiency - L
1130991 2024-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $5.88M Yes 2
14.879 Mainstream Vouchers $1.05M Yes 2
14.872 Public Housing Capital Fund $1.05M Yes 4
14.850 Public Housing Operating Fund $566,816 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $84,137 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $70,045 - 0
21.019 Coronavirus Relief Fund $29,996 - 0

Contacts

Name Title Type
KSRUMTJVA7P8 Bobbi Richards Auditee
5085481977 Michael Guyder Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF PRESENTATION Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Falmouth Housing Authority, under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Falmouth Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Falmouth Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Falmouth Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Falmouth Housing Authority, under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Falmouth Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Falmouth Housing Authority.
Title: NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Falmouth Housing Authority, under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Falmouth Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Falmouth Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Falmouth Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned.
Title: NOTE 3 – INDIRECT COST RATE Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Falmouth Housing Authority, under programs of the federal government for the year ended June 30, 2024. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Falmouth Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Falmouth Housing Authority. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The Falmouth Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Falmouth Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-003
2024-003 – PERIOD OF PERFORMANCE Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.872 – Public Housing Capital Fund CRITERIA 1. Obligations - Unless an extension is approved by HUD, a PHA must obligate at least 90 percent of each Capital Fund grant, including formula grants, non-accumulating RHF, natural disaster, and lead-based paint grants within 24 months of the funds becoming available to the PHA for obligation. For emergency grants, safety and security grants and safety and security-carbon monoxide grants, the PHA must obligate at least 90 percent within twelve months of the funds becoming available. The funds become available when HUD executes the Annual Contributions Contract (ACC) Amendment (24 CFR section 905.306). 2. Expenditures - For Capital Fund formula, RHF, natural disaster, and lead-based paint grants, unless HUD approves an extension, a PHA must expend all grant funds no later than 48 months after HUD executes the ACC Amendment (24 CFR section 905.306(f)). However, for emergency grants, safety and security grants and safety and security-carbon monoxide grants, a PHA must expend all grant funds no later than 24 months after HUD executes the ACC Amendment if such a requirement is contained in the ACC Amendment. A PHA must also expend 100% percent of the authorized amount of a Capital Fund grant within 48 months of the date that funds are made available, or the obligation start date. (24 CFR section 905.306). 3. Capital Funds for Operating Costs - Capital Funds transferred to operations (BLI 1406) are not considered obligated until the PHA has budgeted and drawn down the funds. To meet this requirement, the funds must be budgeted in line BLI 1406 (Operations) and the PHA must submit the voucher request in LOCCS. The PHA’s reported obligation amount in LOCCS must be the same amount in the PHA’s accounting system since the date of the voucher request in LOCCS is the point of obligation for funds in BLI 1406. The voucher request date must occur before those funds are reported as obligated in LOCCS under the Obligation & Expenditure tab (24 CFR section 905.314(l)). CONDITION The Authority did not fully obligate and expend the Capital Fund Program grants and has not obligated at least 90 percent of the Capital Fund program grants within the 24-month deadline as follows:  2019 Capital Fund Program  2020 Capital Fund Program  2020 Emergency Capital Fund Program In addition, the Authority did comply with the Capital Funds for Operating Costs requirement for 2019 Capital Fund Program. CAUSE The Authority was not aware of approaching obligation and expenditure deadlines and did not take appropriate or sufficient action to mitigate the loss of federal awards. EFFECT The Authority did not comply with the Period of Performance requirements. QUESTIONED COSTS None identified. CONTEXT The 2019 and 2020 CFP grant along with 2020 Emergency CFP grants were not obligated and expended within the applicable allowable period. The 2019 CFP grant funds transferred to operations were obligated before the voucher request was submitted. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority take immediate action to minimize the potential loss of Capital Fund Program grant funds and ensure that controls are in place to prevent deadlines from being missed for future Capital Fund grants. In addition, we recommend the grant fund voucher requests for operating transfers be submitted prior to funds being reported as obligated. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-005
2024-005 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.872 – Public Housing Capital Fund CRITERIA HUD-53001, Actual Modernization Cost Certificate (AMCC) Capital Fund Program (OMB No. 2577-0157) Report authority: 24 CFR 905.324 Data Reporting Requirements For modernization projects, the PHA shall submit the AMCC within 90 days after Expenditure End Date. To initiate the closeout process, the PHA shall submit the AMCC which details actual costs incurred between the DOFA date and the completion of the modernization project. CONDITION The Authority did not submit the AMCC for 2019 Capital Fund Program grant within 90 days after Expenditure End Date. CAUSE The Authority was not aware of approaching reporting deadlines and did not take appropriate or sufficient action to initiate the closeout process. EFFECT The Authority did not comply with the Reporting requirements. QUESTIONED COSTS None identified. CONTEXT The closeout process for 2019 CFP grant was not initiated within the 90 days after Expenditure End Date. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure that controls are in place to prevent reporting deadlines from being missed for future Capital Fund grants. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 – INTERNAL CONTROLS OVER COMPLIANCE – ALLOWABLE COSTS/COST PRINCIPLES Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA Factors affecting allowability of costs: Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal Awards: (a) Be necessary and reasonable for the performance of the Federal Award and be allocable thereto under these principles. (b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non- Federal entity. (d) Be accorded consistent treatment. A cost may not be assigned to a Federal Award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. (e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this Part. (f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. (g) Be adequately documented. (2 CFR Chapter 1 Part 200 § 200.403) CONDITION As disclosed in Finding 2024-001, we identified three (3) instances where invoices were missing proper approvals. CAUSE As disclosed in Finding 2024-001, the Authority did not establish an effective control environment or effective control activities over compliance. EFFECT The Authority is not in compliance with its Fiscal Policies and Procedures and its Federal Award program requirements. QUESTIONED COSTS None identified. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
Finding 2024-003
2024-003 – PERIOD OF PERFORMANCE Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.872 – Public Housing Capital Fund CRITERIA 1. Obligations - Unless an extension is approved by HUD, a PHA must obligate at least 90 percent of each Capital Fund grant, including formula grants, non-accumulating RHF, natural disaster, and lead-based paint grants within 24 months of the funds becoming available to the PHA for obligation. For emergency grants, safety and security grants and safety and security-carbon monoxide grants, the PHA must obligate at least 90 percent within twelve months of the funds becoming available. The funds become available when HUD executes the Annual Contributions Contract (ACC) Amendment (24 CFR section 905.306). 2. Expenditures - For Capital Fund formula, RHF, natural disaster, and lead-based paint grants, unless HUD approves an extension, a PHA must expend all grant funds no later than 48 months after HUD executes the ACC Amendment (24 CFR section 905.306(f)). However, for emergency grants, safety and security grants and safety and security-carbon monoxide grants, a PHA must expend all grant funds no later than 24 months after HUD executes the ACC Amendment if such a requirement is contained in the ACC Amendment. A PHA must also expend 100% percent of the authorized amount of a Capital Fund grant within 48 months of the date that funds are made available, or the obligation start date. (24 CFR section 905.306). 3. Capital Funds for Operating Costs - Capital Funds transferred to operations (BLI 1406) are not considered obligated until the PHA has budgeted and drawn down the funds. To meet this requirement, the funds must be budgeted in line BLI 1406 (Operations) and the PHA must submit the voucher request in LOCCS. The PHA’s reported obligation amount in LOCCS must be the same amount in the PHA’s accounting system since the date of the voucher request in LOCCS is the point of obligation for funds in BLI 1406. The voucher request date must occur before those funds are reported as obligated in LOCCS under the Obligation & Expenditure tab (24 CFR section 905.314(l)). CONDITION The Authority did not fully obligate and expend the Capital Fund Program grants and has not obligated at least 90 percent of the Capital Fund program grants within the 24-month deadline as follows:  2019 Capital Fund Program  2020 Capital Fund Program  2020 Emergency Capital Fund Program In addition, the Authority did comply with the Capital Funds for Operating Costs requirement for 2019 Capital Fund Program. CAUSE The Authority was not aware of approaching obligation and expenditure deadlines and did not take appropriate or sufficient action to mitigate the loss of federal awards. EFFECT The Authority did not comply with the Period of Performance requirements. QUESTIONED COSTS None identified. CONTEXT The 2019 and 2020 CFP grant along with 2020 Emergency CFP grants were not obligated and expended within the applicable allowable period. The 2019 CFP grant funds transferred to operations were obligated before the voucher request was submitted. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority take immediate action to minimize the potential loss of Capital Fund Program grant funds and ensure that controls are in place to prevent deadlines from being missed for future Capital Fund grants. In addition, we recommend the grant fund voucher requests for operating transfers be submitted prior to funds being reported as obligated. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-004
2024-004 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871/14.879 – Housing Voucher Cluster ALN #: 14.872 – Public Housing Capital Fund CRITERIA The unaudited FDS was required to be submitted to HUD by September 15, 2024. CONDITION The Authority’s unaudited FDS was submitted to HUD on September 16, 2024. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting the FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow or the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-005
2024-005 – REPORTING Significant Deficiency/Other Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.872 – Public Housing Capital Fund CRITERIA HUD-53001, Actual Modernization Cost Certificate (AMCC) Capital Fund Program (OMB No. 2577-0157) Report authority: 24 CFR 905.324 Data Reporting Requirements For modernization projects, the PHA shall submit the AMCC within 90 days after Expenditure End Date. To initiate the closeout process, the PHA shall submit the AMCC which details actual costs incurred between the DOFA date and the completion of the modernization project. CONDITION The Authority did not submit the AMCC for 2019 Capital Fund Program grant within 90 days after Expenditure End Date. CAUSE The Authority was not aware of approaching reporting deadlines and did not take appropriate or sufficient action to initiate the closeout process. EFFECT The Authority did not comply with the Reporting requirements. QUESTIONED COSTS None identified. CONTEXT The closeout process for 2019 CFP grant was not initiated within the 90 days after Expenditure End Date. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure that controls are in place to prevent reporting deadlines from being missed for future Capital Fund grants. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.