FAC Explorer

Audit 364403

FY End
2023-12-31
Total Expended
$17.10M
Findings
4
Programs
8
Organization: Housing Authority of the City of Pueblo (CO)
Year: 2023 Accepted: 2025-08-18
Auditor: Eide Bailly

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573738 2023-003 Significant Deficiency - ABEN
573739 2023-002 Significant Deficiency - E
1150180 2023-003 Significant Deficiency - ABEN
1150181 2023-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $10.75M Yes 1
14.850 Public Housing Operating Fund $3.84M Yes 1
14.872 Public Housing Capital Fund $1.59M - 0
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $562,449 - 0
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $123,345 - 0
10.405 Farm Labor Housing Loans and Grants $97,814 - 0
10.427 Rural Rental Assistance Payments $70,002 - 0
14.896 Family Self-Sufficiency Program $65,930 - 0

Contacts

Name Title Type
DJMBM3YN5R55 Lisa White Auditee
2175566358 Aaron Ness 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. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Housing Authority of the City of Pueblo (the Authority) under programs of the federal government for the year ended December 31, 2023. The information 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 position, or cash flows of the Authority.
Title: Farm Labor Housing Loan Program Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses. The balances and transactions related to the Farm Labor Housing loan program, Federal Financial Assistance Listing Number 10.405, are included in the Housing Authority of the City of Pueblo’s basic financial statements. The balance of the loan outstanding as of December 31, 2023 is $82,980.

Finding Details

Finding 2023-003
U.S. Department of Housing and Urban Development - CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – Section 8 Housing Choice Vouchers - 2023 Activities Allowed or Unallowed, Allowable Costs and Cost Principles, Eligibility, Special Tests and Provisions – Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. In addition, the Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). Condition – The Authority was not able to locate one of the participant files that we selected for testing. Questioned Costs – None Reported. Context/Sampling – A non-statistical sample of 40 participants were selected for testing, of which 1 participant file could not be located, thus an additional 21 participants were selected for testing to bring the total to 60 tested. 1 out of the 61 participant files was not able to be located. Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible. Cause – During 2023, the Housing Choice Voucher Department moved physical locations. Also, during this time, all the historical paper files were being scanned for digital storage. During this process, paperwork for one of the participants’ re-certification and inspection were misplaced and not able to be located during audit fieldwork. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement internal controls to ensure that all participant files are maintained. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-002
U.S. Department of Housing and Urban Development - CFDA #14.850 Public and Indian Housing Applicable Federal Award Number and Year – Public and Indian Housing - 2023 Eligibility Significant Deficiency in Internal Control over Compliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. Condition – During our testing, we identified 5 participant files in which the recertification /move-in checklists were not signed by Authority staff. Questioned Costs – None Reported. Context/Sampling – A non-statistical sample of 60 participants were selected for testing. Five out of the 60 participant files had recertification / move-in checklists that were not signed by Authority staff. Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible. Cause – Due to staff turnover in the compliance department. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement internal controls to ensure that all recertification / move-in checklists are signed by Authority staff. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-003
U.S. Department of Housing and Urban Development - CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – Section 8 Housing Choice Vouchers - 2023 Activities Allowed or Unallowed, Allowable Costs and Cost Principles, Eligibility, Special Tests and Provisions – Housing Quality Standards Inspections Significant Deficiency in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. In addition, the Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). Condition – The Authority was not able to locate one of the participant files that we selected for testing. Questioned Costs – None Reported. Context/Sampling – A non-statistical sample of 40 participants were selected for testing, of which 1 participant file could not be located, thus an additional 21 participants were selected for testing to bring the total to 60 tested. 1 out of the 61 participant files was not able to be located. Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible. Cause – During 2023, the Housing Choice Voucher Department moved physical locations. Also, during this time, all the historical paper files were being scanned for digital storage. During this process, paperwork for one of the participants’ re-certification and inspection were misplaced and not able to be located during audit fieldwork. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement internal controls to ensure that all participant files are maintained. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-002
U.S. Department of Housing and Urban Development - CFDA #14.850 Public and Indian Housing Applicable Federal Award Number and Year – Public and Indian Housing - 2023 Eligibility Significant Deficiency in Internal Control over Compliance Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. Condition – During our testing, we identified 5 participant files in which the recertification /move-in checklists were not signed by Authority staff. Questioned Costs – None Reported. Context/Sampling – A non-statistical sample of 60 participants were selected for testing. Five out of the 60 participant files had recertification / move-in checklists that were not signed by Authority staff. Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible. Cause – Due to staff turnover in the compliance department. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement internal controls to ensure that all recertification / move-in checklists are signed by Authority staff. Views of Responsible Officials – Management agrees with the finding.