FAC Explorer

Audit 359697

FY End
2024-09-30
Total Expended
$216.66M
Findings
2
Programs
8
Organization: Southern Nevada Regional Housing Authority (NV)
Year: 2024 Accepted: 2025-06-24
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
566042 2024-001 Material Weakness Yes E
1142484 2024-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $12.50M Yes 0
14.871 Section 8 Housing Choice Vouchers $7.68M Yes 0
14.872 Public Housing Capital Fund $3.75M Yes 0
14.879 Mainstream Vouchers $3.49M Yes 0
14.896 Family Self-Sufficiency Program $1.01M - 0
14.892 Choice Neighborhoods Planning Grants $340,771 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $105,873 - 0
14.895 Jobs-Plus Pilot Initiative $389 - 0

Contacts

Name Title Type
DAE1MQ2FVXV8 Fred Haron Auditee
7024773120 Dale R. Rector Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority provided no federal awards to subrecipients during the fiscal year ending September 30, 2024.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority received no federal awards of non-monetary assistance that are required to be disclosed for the year ended September 30, 2024. The Authority had no loans or loan guarantees to be disclosed as of September 30, 2024. There were no federally restricted endowment funds required to be disclosed for the fiscal year ended September 30, 2024. The Authority maintains the following limits of insurance as of September 30, 2024: Property $ 398,044,474 Equipment Breakdown $ 100,000,000 Flood $ 250,000 Liability $ 2,000,000 Public Officials $ 1,000,000 Worker Compensation Statutory Employee Practice $ 1,000,000 Auto Liability $ 700,000 Settled claims have not exceeded the above limits over the past three years.

Finding Details

Finding 2024-001
Finding 2024-001 - Housing Choice Voucher Tenant Files - Eligibility - Internal Control over Tenant Flies - Noncompliance & Material Weakness - Housing Choice voucher Program - ALN #14.871 Condition & Cause: We reviewed one hundred (100) tenant files for compliance across multiple areas and found thirty­ two (32) files to be noncompliant. Of these, twenty-one (21) files contained errors related to adjusted annual income. Specifically: • Eight (8) files - Unable to locate income verification • Seven (7) files - A Change of Unit was conducted without verifying income as required by the Admin Plan • Seven (7) files - Miscalculations of annual income • Three (3) files - Unable to locate deduction verification We identified HAP misstatements within the sample, extrapolated the results to the full population, and disclosed the estimated questioned costs below. The extrapolated misstatement represents 0.17% of total HAP expense, which is immaterial to the financial statements for the reporting period. Additionally, we were unable to locate various documents that are required to be maintained, such as the applicable EIV report (16 files), original lease (6 files), identification documents (6 files), Declaration 214s (6 files), annual application for continued occupancy (3 files), and Form 9886 (3 files). Lastly, we noted four (4) instances in which the annual reexamination was submitted between three to five months after the effective date. The Agency is currently transitioning from physical files to digital records. This shift has contributed to documentation not being readily available during the audit. The income miscalculations were due to employee errors. As a corrective measure, post year-end, the department established a compliance division and enhanced internal quality control procedures. Criteria: The Code of Federal Regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to properly verify and calculate annual income, maintain required documentation, and complete timely reexaminations can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Persistent noncompliance can result in increased scrutiny from regulatory agencies and a decrease in vouchers or program funding. Recommendation: We recommend that the Agency promptly finalize the transition to a digital file system with proper document retention protocols. The Agency should continue to enhance their monitoring and quality control review of the HCV program files and determine whether any occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: Approximately $322,568 Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2024-001
Finding 2024-001 - Housing Choice Voucher Tenant Files - Eligibility - Internal Control over Tenant Flies - Noncompliance & Material Weakness - Housing Choice voucher Program - ALN #14.871 Condition & Cause: We reviewed one hundred (100) tenant files for compliance across multiple areas and found thirty­ two (32) files to be noncompliant. Of these, twenty-one (21) files contained errors related to adjusted annual income. Specifically: • Eight (8) files - Unable to locate income verification • Seven (7) files - A Change of Unit was conducted without verifying income as required by the Admin Plan • Seven (7) files - Miscalculations of annual income • Three (3) files - Unable to locate deduction verification We identified HAP misstatements within the sample, extrapolated the results to the full population, and disclosed the estimated questioned costs below. The extrapolated misstatement represents 0.17% of total HAP expense, which is immaterial to the financial statements for the reporting period. Additionally, we were unable to locate various documents that are required to be maintained, such as the applicable EIV report (16 files), original lease (6 files), identification documents (6 files), Declaration 214s (6 files), annual application for continued occupancy (3 files), and Form 9886 (3 files). Lastly, we noted four (4) instances in which the annual reexamination was submitted between three to five months after the effective date. The Agency is currently transitioning from physical files to digital records. This shift has contributed to documentation not being readily available during the audit. The income miscalculations were due to employee errors. As a corrective measure, post year-end, the department established a compliance division and enhanced internal quality control procedures. Criteria: The Code of Federal Regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to properly verify and calculate annual income, maintain required documentation, and complete timely reexaminations can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Persistent noncompliance can result in increased scrutiny from regulatory agencies and a decrease in vouchers or program funding. Recommendation: We recommend that the Agency promptly finalize the transition to a digital file system with proper document retention protocols. The Agency should continue to enhance their monitoring and quality control review of the HCV program files and determine whether any occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: Approximately $322,568 Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.