FAC Explorer

Audit 363726

FY End
2024-12-31
Total Expended
$48.11M
Findings
2
Programs
9
Organization: Housing Authority of Salt Lake City (UT)
Year: 2024 Accepted: 2025-08-05
Auditor: Berman Hopkins Wright & Laham CPAS and Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572602 2024-001 Significant Deficiency - E
1149044 2024-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $36.97M Yes 1
14.871 Housing Choice Voucher Program $5.12M - 0
14.879 Mainstream Vouchers $1.25M - 0
21.023 Emergency Rental Assistance Program $1.08M Yes 0
14.871 Emergency Housing Voucher $1.01M - 0
93.558 Transitional Assistance to Needy Families $575,565 - 0
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $505,466 - 0
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $81,913 - 0
14.251 Drgr Human Rights Housing Project $19,095 - 0

Contacts

Name Title Type
EECPYLAN4KF6 Kristen Knecht Auditee
8014280554 Sean Cedar 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 Housing Authority of Salt Lake City 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . 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"), Assistance Listing No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority. De Minimis Rate Used: N Rate Explanation: The Authority 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 Housing Authority of Salt Lake City 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . 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"), Assistance Listing No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority.
Title: NOTE B: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of Salt Lake City 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . 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"), Assistance Listing No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10-percent de minimis indirect cost rate The Authority 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 Housing Authority of Salt Lake City 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . 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"), Assistance Listing No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10-percent de minimis indirect cost rate During the year ended December 31, 2024, the Authority 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 Housing Authority of Salt Lake City 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards . 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"), Assistance Listing No. 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule is the total amount received directly from HUD and not the expenditures paid by the Authority. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10-percent de minimis indirect cost rate The Authority did not receive any noncash assistance, federal loans, or federally funded insurance during the year ended December 31, 2024. The Authority has received a loan funded by programs of U.S. Department of Housing and Urban Development. The balance of the loan outstanding at December 31, 2024 is $480,865.

Finding Details

Finding 2024-001
Condition: Out of an approximate population of 2,396 of MTW Vouchers and 170 Low Rent Public Housing tenants the following deficiencies were noted: MTW Housing Choice Voucher (a total of 36 tenants selected for testing): • Two files did not use the correct utility allowance, • Two files did not have support necessary to verify income exemptions, • One file did not have documentation necessary to verify the reported income, • One file did not have 9886 release of information from within 15 months of the annual recertification, • Three files did not have a 214 declaration for a member of the household, and • Two files did not have identification documents Low Rent Public Housing (a total of 8 tenants selected for testing): • Seven files did not contain evidence of timely unit inspections being performed. • One file did not have documentation necessary to verify the reported income, and • Three files did not have 9886 release of information from within 15 months of the annual recertification Criteria: The Authority’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require 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. In addition, 24 CFR 5.705 requires each unit be periodically inspected. Context: The auditor randomly selected tenant files out of the population from each program as outlined, 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 Commission is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all eligibility requirements are being followed and units are being inspected timely Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being 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 and inspections performed. 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 2024-001
Condition: Out of an approximate population of 2,396 of MTW Vouchers and 170 Low Rent Public Housing tenants the following deficiencies were noted: MTW Housing Choice Voucher (a total of 36 tenants selected for testing): • Two files did not use the correct utility allowance, • Two files did not have support necessary to verify income exemptions, • One file did not have documentation necessary to verify the reported income, • One file did not have 9886 release of information from within 15 months of the annual recertification, • Three files did not have a 214 declaration for a member of the household, and • Two files did not have identification documents Low Rent Public Housing (a total of 8 tenants selected for testing): • Seven files did not contain evidence of timely unit inspections being performed. • One file did not have documentation necessary to verify the reported income, and • Three files did not have 9886 release of information from within 15 months of the annual recertification Criteria: The Authority’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require 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. In addition, 24 CFR 5.705 requires each unit be periodically inspected. Context: The auditor randomly selected tenant files out of the population from each program as outlined, 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 Commission is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all eligibility requirements are being followed and units are being inspected timely Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being 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 and inspections performed. 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.