Audit 356892

FY End

2024-03-31

Total Expended

$2.32M

Findings

2

Programs

6

Organization: Housing Authority of Carbon County (UT)

Year: 2024 Accepted: 2025-05-22

Auditor: Haynie & Company

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
561269	2024-001	-	Yes	N
1137711	2024-001	-	Yes	N

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$1.31M	Yes	1
14.850	Public Housing Operating Fund	$401,256	-	0
14.872	Public Housing Capital Fund	$353,605	-	0
10.415	Rural Rental Housing Loans	$217,975	-	0
14.U01	Emergency Housing Voucher	$44,519	-	0
10.427	Rural Rental Assistance Payments	$750	-	0

Contacts

Name	Title	Type
CKNKDCFLP3F4	Jody Hansen	Auditee
4356375170	Brent Stratton	Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Salt Lake City (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on an accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Sub‐Recipients During the fiscal year ended March 31, 2024, the Authority made no payments to sub recipients. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Salt Lake City (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on an accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Sub‐Recipients During the fiscal year ended March 31, 2024, the Authority made no payments to sub recipients. Indirect Cost Rate The Authority has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414.

Title: Public Housing Capital Fund by Grant Year Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Salt Lake City (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on an accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Sub‐Recipients During the fiscal year ended March 31, 2024, the Authority made no payments to sub recipients. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. See the Notes to the SEFA for table

Finding Details

Finding 2024-001

Internal Control over Financial Reporting There were no findings to report for the year ended March 31, 2024. Compliance 2024-01 – Housing Choice Voucher – Reasonable Rents Calculation and Documentation Condition -In our sample of 25 Housing Choice Voucher tenant files, the files that had been merged into the Authority from Emery County did not have documentation to support rent reasonableness for existing tenants with rental increases during the year. All of the tenants that had not been part of the merger had the required documentation. Effect – The Housing Authority is not in compliance with the HUD requirements for determining reasonableness rents for rent increases. Cause –Rental increases across all units is due to inflation and lack of supply has increased the number of tenant’s that need reasonable rent calculations performed. At the same time the staff available to perform the additional work has not changed. The current system used by the PHA to calculate and document the rent reasonableness is time not automated and so is time intensive for the Section-8 employee. Criteria – According to the HUD HCV Program guidebook paragraph 2.1.2: (emphasis added) Before the PHA may approve any rent increase to the owner, the PHA must determine and document whether the proposed rent is reasonable compared to similar units in the marketplace and not higher than those paid by unassisted tenants on the premises. Recommendation: The PHA should look at their process and system to see if they can make changes so they can quickly determine, and document rent reasonableness for all rent increases to the owner in accordance with HUD guidelines.

Finding 2024-001

Internal Control over Financial Reporting There were no findings to report for the year ended March 31, 2024. Compliance 2024-01 – Housing Choice Voucher – Reasonable Rents Calculation and Documentation Condition -In our sample of 25 Housing Choice Voucher tenant files, the files that had been merged into the Authority from Emery County did not have documentation to support rent reasonableness for existing tenants with rental increases during the year. All of the tenants that had not been part of the merger had the required documentation. Effect – The Housing Authority is not in compliance with the HUD requirements for determining reasonableness rents for rent increases. Cause –Rental increases across all units is due to inflation and lack of supply has increased the number of tenant’s that need reasonable rent calculations performed. At the same time the staff available to perform the additional work has not changed. The current system used by the PHA to calculate and document the rent reasonableness is time not automated and so is time intensive for the Section-8 employee. Criteria – According to the HUD HCV Program guidebook paragraph 2.1.2: (emphasis added) Before the PHA may approve any rent increase to the owner, the PHA must determine and document whether the proposed rent is reasonable compared to similar units in the marketplace and not higher than those paid by unassisted tenants on the premises. Recommendation: The PHA should look at their process and system to see if they can make changes so they can quickly determine, and document rent reasonableness for all rent increases to the owner in accordance with HUD guidelines.