FAC Explorer

Audit 358012

FY End
2024-06-30
Total Expended
$6.11M
Findings
12
Programs
6
Organization: Wallingford Housing Authority (CT)
Year: 2024 Accepted: 2025-06-04
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563799 2024-002 Material Weakness - L
563800 2024-003 Significant Deficiency - L
563801 2024-004 Significant Deficiency - L
563802 2024-002 Material Weakness - L
563803 2024-003 Significant Deficiency - L
563804 2024-004 Significant Deficiency - L
1140241 2024-002 Material Weakness - L
1140242 2024-003 Significant Deficiency - L
1140243 2024-004 Significant Deficiency - L
1140244 2024-002 Material Weakness - L
1140245 2024-003 Significant Deficiency - L
1140246 2024-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.61M Yes 0
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.66M Yes 0
14.871 Section 8 Housing Choice Vouchers $1.25M Yes 3
14.195 Project-Based Rental Assistance (pbra) $247,333 - 0
14.879 Mainstream Vouchers $214,710 Yes 3
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $137,056 - 0

Contacts

Name Title Type
W76PVKJJF8P9 Ron Canalia Auditee
2032695173 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 Wallingford 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 Wallingford Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Wallingford 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 Wallingford 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 Wallingford 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 Wallingford Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Wallingford 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 Wallingford 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 Wallingford Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Wallingford 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 Wallingford 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 Wallingford 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 Wallingford Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Wallingford 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 Wallingford Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Wallingford Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 4 – OTHER ASSISTANCE Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of Wallingford 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 Wallingford Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Wallingford 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 Wallingford Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Authority’s loan with Lument Capital is insured under Section 223(f) (CFDA #14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects). The outstanding loan balance at June 30, 2024 and 2023 was $1,629,087, and $1,659,853, respectively.

Finding Details

Finding 2024-002
2024-002 - REPORTING Material Weakness / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The Authority’s unaudited annual filing with HUD’s Real Estate Assessment Center (REAC) for fiscal year ended June 30, 2024 was due no later than September 15, 2024. CONDITION The required unaudited annual filing with HUD’s Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior to audit adjustments, there were material misstatements that were not identified and corrected by management. CAUSE The system of internal controls was inadequate to prepare complete and accurate financial information in a timely manner. EFFECT Untimely and inaccurate filing hinders the timely administration and assessment of program results by grantor officials. QUESTIONED COSTS None Identified. CONTEXT The Authority was required to submit unaudited financial statements with HUD’s Real Estate Assessment Center (REAC) by September 15, 2024. The initial submission was submitted on September 18, 2024; However, accurate financial information was not available until March 2025. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority evaluate its system of internal controls and implement controls to ensure that all significant accounts are reconciled in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-003
2024-003 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The PHA must conduct a reexamination of family income and composition at least annually. (24 CFR 982.516) CONDITION We selected a sample of 12 annual reexaminations, which is approximately 10% of the population, for participants in the Housing Voucher Cluster. For 3 out of the 12 reexaminations, the annual reexamination was not conducted timely. CAUSE Delays in receiving information from participants caused the re-examinations to not be conducted on an annual basis. EFFECT The annual re-examinations are used to calculate the participant share of housing assistance payment. Untimely reexaminations may impact the participant share of rent. QUESTIONED COSTS None Identified. CONTEXT We selected a sample of 12 reexaminations from a population of approximately 100 participants. These were not statistically valid samples. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority establish a schedule to ensure that all reexaminations are conducted in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-004
2024-004 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA Electronic submission of form HUD-52681-B data is a monthly requirement. The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. CONDITION During the fiscal year ended June 30, 2024, the Authority’s internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, housing assistance payments for Mainstream Port-out vouchers were not reported in VMS. CAUSE The Authority had not established sufficient internal controls related to this submission Requirement. EFFECT HUD uses the information submitted to determine renewal funding levels, and for other funding and monitoring decisions. Inaccurate information submitted could affect decisions made by HUD. QUESTIONED COSTS None Identified. CONTEXT Electronic submission of form HUD-52681-B data is a monthly requirement. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should implement a control of the information being entered into VMS is reconciled to supporting documentation. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 - REPORTING Material Weakness / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The Authority’s unaudited annual filing with HUD’s Real Estate Assessment Center (REAC) for fiscal year ended June 30, 2024 was due no later than September 15, 2024. CONDITION The required unaudited annual filing with HUD’s Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior to audit adjustments, there were material misstatements that were not identified and corrected by management. CAUSE The system of internal controls was inadequate to prepare complete and accurate financial information in a timely manner. EFFECT Untimely and inaccurate filing hinders the timely administration and assessment of program results by grantor officials. QUESTIONED COSTS None Identified. CONTEXT The Authority was required to submit unaudited financial statements with HUD’s Real Estate Assessment Center (REAC) by September 15, 2024. The initial submission was submitted on September 18, 2024; However, accurate financial information was not available until March 2025. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority evaluate its system of internal controls and implement controls to ensure that all significant accounts are reconciled in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-003
2024-003 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The PHA must conduct a reexamination of family income and composition at least annually. (24 CFR 982.516) CONDITION We selected a sample of 12 annual reexaminations, which is approximately 10% of the population, for participants in the Housing Voucher Cluster. For 3 out of the 12 reexaminations, the annual reexamination was not conducted timely. CAUSE Delays in receiving information from participants caused the re-examinations to not be conducted on an annual basis. EFFECT The annual re-examinations are used to calculate the participant share of housing assistance payment. Untimely reexaminations may impact the participant share of rent. QUESTIONED COSTS None Identified. CONTEXT We selected a sample of 12 reexaminations from a population of approximately 100 participants. These were not statistically valid samples. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority establish a schedule to ensure that all reexaminations are conducted in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-004
2024-004 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA Electronic submission of form HUD-52681-B data is a monthly requirement. The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. CONDITION During the fiscal year ended June 30, 2024, the Authority’s internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, housing assistance payments for Mainstream Port-out vouchers were not reported in VMS. CAUSE The Authority had not established sufficient internal controls related to this submission Requirement. EFFECT HUD uses the information submitted to determine renewal funding levels, and for other funding and monitoring decisions. Inaccurate information submitted could affect decisions made by HUD. QUESTIONED COSTS None Identified. CONTEXT Electronic submission of form HUD-52681-B data is a monthly requirement. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should implement a control of the information being entered into VMS is reconciled to supporting documentation. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 - REPORTING Material Weakness / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The Authority’s unaudited annual filing with HUD’s Real Estate Assessment Center (REAC) for fiscal year ended June 30, 2024 was due no later than September 15, 2024. CONDITION The required unaudited annual filing with HUD’s Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior to audit adjustments, there were material misstatements that were not identified and corrected by management. CAUSE The system of internal controls was inadequate to prepare complete and accurate financial information in a timely manner. EFFECT Untimely and inaccurate filing hinders the timely administration and assessment of program results by grantor officials. QUESTIONED COSTS None Identified. CONTEXT The Authority was required to submit unaudited financial statements with HUD’s Real Estate Assessment Center (REAC) by September 15, 2024. The initial submission was submitted on September 18, 2024; However, accurate financial information was not available until March 2025. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority evaluate its system of internal controls and implement controls to ensure that all significant accounts are reconciled in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-003
2024-003 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The PHA must conduct a reexamination of family income and composition at least annually. (24 CFR 982.516) CONDITION We selected a sample of 12 annual reexaminations, which is approximately 10% of the population, for participants in the Housing Voucher Cluster. For 3 out of the 12 reexaminations, the annual reexamination was not conducted timely. CAUSE Delays in receiving information from participants caused the re-examinations to not be conducted on an annual basis. EFFECT The annual re-examinations are used to calculate the participant share of housing assistance payment. Untimely reexaminations may impact the participant share of rent. QUESTIONED COSTS None Identified. CONTEXT We selected a sample of 12 reexaminations from a population of approximately 100 participants. These were not statistically valid samples. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority establish a schedule to ensure that all reexaminations are conducted in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-004
2024-004 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA Electronic submission of form HUD-52681-B data is a monthly requirement. The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. CONDITION During the fiscal year ended June 30, 2024, the Authority’s internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, housing assistance payments for Mainstream Port-out vouchers were not reported in VMS. CAUSE The Authority had not established sufficient internal controls related to this submission Requirement. EFFECT HUD uses the information submitted to determine renewal funding levels, and for other funding and monitoring decisions. Inaccurate information submitted could affect decisions made by HUD. QUESTIONED COSTS None Identified. CONTEXT Electronic submission of form HUD-52681-B data is a monthly requirement. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should implement a control of the information being entered into VMS is reconciled to supporting documentation. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-002
2024-002 - REPORTING Material Weakness / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The Authority’s unaudited annual filing with HUD’s Real Estate Assessment Center (REAC) for fiscal year ended June 30, 2024 was due no later than September 15, 2024. CONDITION The required unaudited annual filing with HUD’s Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior to audit adjustments, there were material misstatements that were not identified and corrected by management. CAUSE The system of internal controls was inadequate to prepare complete and accurate financial information in a timely manner. EFFECT Untimely and inaccurate filing hinders the timely administration and assessment of program results by grantor officials. QUESTIONED COSTS None Identified. CONTEXT The Authority was required to submit unaudited financial statements with HUD’s Real Estate Assessment Center (REAC) by September 15, 2024. The initial submission was submitted on September 18, 2024; However, accurate financial information was not available until March 2025. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority evaluate its system of internal controls and implement controls to ensure that all significant accounts are reconciled in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-003
2024-003 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA The PHA must conduct a reexamination of family income and composition at least annually. (24 CFR 982.516) CONDITION We selected a sample of 12 annual reexaminations, which is approximately 10% of the population, for participants in the Housing Voucher Cluster. For 3 out of the 12 reexaminations, the annual reexamination was not conducted timely. CAUSE Delays in receiving information from participants caused the re-examinations to not be conducted on an annual basis. EFFECT The annual re-examinations are used to calculate the participant share of housing assistance payment. Untimely reexaminations may impact the participant share of rent. QUESTIONED COSTS None Identified. CONTEXT We selected a sample of 12 reexaminations from a population of approximately 100 participants. These were not statistically valid samples. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority establish a schedule to ensure that all reexaminations are conducted in a timely manner. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.
Finding 2024-004
2024-004 - REPORTING Significant Deficiency / Other Matter U.S. Department of Housing and Urban Development ALN: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA Electronic submission of form HUD-52681-B data is a monthly requirement. The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. CONDITION During the fiscal year ended June 30, 2024, the Authority’s internal controls over the submission of VMS to HUD did not include a review or reconciliation of the information submitted to supporting documentation. As a result, housing assistance payments for Mainstream Port-out vouchers were not reported in VMS. CAUSE The Authority had not established sufficient internal controls related to this submission Requirement. EFFECT HUD uses the information submitted to determine renewal funding levels, and for other funding and monitoring decisions. Inaccurate information submitted could affect decisions made by HUD. QUESTIONED COSTS None Identified. CONTEXT Electronic submission of form HUD-52681-B data is a monthly requirement. REPEAT FINDING Not a repeat finding. RECOMMENDATION The Authority should implement a control of the information being entered into VMS is reconciled to supporting documentation. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.