FAC Explorer

Audit 360862

FY End
2024-09-30
Total Expended
$46.66M
Findings
4
Programs
16
Organization: Homes for Good Housing Agency (OR)
Year: 2024 Accepted: 2025-06-30
Auditor: Berman Hopkins Wright & Laham CPAS and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
569373 2024-002 - Yes E
569374 2024-003 - - C
1145815 2024-002 - Yes E
1145816 2024-003 - - C

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $32.69M Yes 2
14.871 Section 8 Housing Choice Vouchers $2.35M - 0
14.871 Ehv Emergency Housing Voucher $2.34M - 0
14.879 Mainstream Vouchers $2.04M - 0
10.415 Rural Rental Housing Loans $1.99M Yes 0
81.042 Weatherization Assistance for Low-Income Persons $1.20M - 0
93.568 Low-Income Home Energy Assistance $878,351 - 0
14.238 Shelter Plus Care $810,666 - 0
14.267 Continuum of Care Program $671,838 - 0
14.103 Interest Reduction Payments Rental and Cooperative Housing for Lower Income Families $383,589 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $324,578 - 0
21.027 Emergency Rental Assistance Program $266,243 - 0
10.427 Rural Rental Assistance Payments $256,144 - 0
14.896 Family Self-Sufficiency Program $236,671 - 0
62.024 Va Homeless Providers Grant and Per Diem Program $145,973 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $83,476 - 0

Contacts

Name Title Type
P21QY69GGRU7 Sean Pearson Auditee
7075705347 Laura Anne Pray Auditor
No contacts on file

Notes to SEFA

Title: NOTE A - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Homes for Good Housing Agency and is presented on the accrual basis of accounting. The information on 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (“HCV”), AL No. 14.871, and Moving to Work, AL No. 14.881, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the expenditures paid by the Agency. De Minimis Rate Used: N Rate Explanation: The Agency did not elect to use the 10-percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Homes for Good Housing Agency and is presented on the accrual basis of accounting. The information on 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (“HCV”), AL No. 14.871, and Moving to Work, AL No. 14.881, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the expenditures paid by the Agency.
Title: NOTE B - INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Homes for Good Housing Agency and is presented on the accrual basis of accounting. The information on 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (“HCV”), AL No. 14.871, and Moving to Work, AL No. 14.881, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the expenditures paid by the Agency. De Minimis Rate Used: N Rate Explanation: The Agency did not elect to use the 10-percent de minimis indirect cost rate. The Agency did not elect to use the 10-percent de minimis indirect cost rate
Title: NOTE C - SUB-RECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Homes for Good Housing Agency and is presented on the accrual basis of accounting. The information on 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (“HCV”), AL No. 14.871, and Moving to Work, AL No. 14.881, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the expenditures paid by the Agency. De Minimis Rate Used: N Rate Explanation: The Agency did not elect to use the 10-percent de minimis indirect cost rate. During the year ended September 30, 2024, the Agency had no sub-recipients
Title: NOTE D - NONCASH ASSISTANCE AND OTHER Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Homes for Good Housing Agency and is presented on the accrual basis of accounting. The information on 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (“HCV”), AL No. 14.871, and Moving to Work, AL No. 14.881, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the expenditures paid by the Agency. De Minimis Rate Used: N Rate Explanation: The Agency did not elect to use the 10-percent de minimis indirect cost rate. The Agency has received loans funded by programs of U.S. Department of Agriculture. The loans are included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The balance of the loans outstanding at September 30, 2024 consists of the following:

Finding Details

Finding 2024-002
Condition: Out of an approximate population of approximately 4,800 tenants, 40 tenant files were tested and the following deficiencies were noted: • One file did not calculate income correctly, • One file did not utilize the correct utility allowance, • Three files did not have a unit inspection during the prior 3 year period. Criteria: The Authority’s Moving to Work (“MTW”) Annual Plan, Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor haphazardly selected 40 tenants which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges, which is impacting the housing industry as a whole and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.
Finding 2024-003
Condition: Out of the 72 grant drawdowns during the year, 24 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supporting invoices being paid to the vendors and subsequently the invoices were not paid within the 72-hours, as required. Context: The auditor haphazardly selected 24 grant drawdowns from the population, which we consider to be a statistically valid sample size. The auditor reviewed the drawdowns and supporting documentation to ensure proper procedures are being followed and that the Agency is in compliance with HUD requirements. Criteria: The U.S. Treasury per 2 CFR section 200.305 (2 CFR section 200.302(b)(6)) requires grant funds received by the Authority to be properly spent within 72 hours of receipt. HUD regulations require that proper documentation be maintained for all Capital Fund Program per 24 CFR 905.326. Cause: The Agency experienced staff turnover in the finance department as well as difficulty replacing personnel knowledgeable with HUD and grant reporting requirements. Effect: The Agency did not disburse the capital funds in a timely manner for one of the draws made during the year. Questioned Costs: $40,500 Auditor’s Recommendations: The Agency should continue to develop and implement internal controls over grant management to coordinate capital fund draws with the timing of invoice payments. View of Responsible Officials: See Corrective Action Plan
Finding 2024-002
Condition: Out of an approximate population of approximately 4,800 tenants, 40 tenant files were tested and the following deficiencies were noted: • One file did not calculate income correctly, • One file did not utilize the correct utility allowance, • Three files did not have a unit inspection during the prior 3 year period. Criteria: The Authority’s Moving to Work (“MTW”) Annual Plan, Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete and accurate tenant files. Context: The auditor haphazardly selected 40 tenants which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges, which is impacting the housing industry as a whole and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.
Finding 2024-003
Condition: Out of the 72 grant drawdowns during the year, 24 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supporting invoices being paid to the vendors and subsequently the invoices were not paid within the 72-hours, as required. Context: The auditor haphazardly selected 24 grant drawdowns from the population, which we consider to be a statistically valid sample size. The auditor reviewed the drawdowns and supporting documentation to ensure proper procedures are being followed and that the Agency is in compliance with HUD requirements. Criteria: The U.S. Treasury per 2 CFR section 200.305 (2 CFR section 200.302(b)(6)) requires grant funds received by the Authority to be properly spent within 72 hours of receipt. HUD regulations require that proper documentation be maintained for all Capital Fund Program per 24 CFR 905.326. Cause: The Agency experienced staff turnover in the finance department as well as difficulty replacing personnel knowledgeable with HUD and grant reporting requirements. Effect: The Agency did not disburse the capital funds in a timely manner for one of the draws made during the year. Questioned Costs: $40,500 Auditor’s Recommendations: The Agency should continue to develop and implement internal controls over grant management to coordinate capital fund draws with the timing of invoice payments. View of Responsible Officials: See Corrective Action Plan