FAC Explorer

Audit 366245

FY End
2024-09-30
Total Expended
$89.64M
Findings
8
Programs
16
Organization: Guam Housing and Urban Renewal Authority (GU)
Year: 2024 Accepted: 2025-09-14
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1152919 2024-001 Material Weakness Yes L
1152920 2024-001 Material Weakness Yes L
1152921 2024-002 Material Weakness Yes L
1152922 2024-002 Material Weakness Yes L
1152923 2024-002 Material Weakness Yes L
1152924 2024-003 Material Weakness Yes N
1152925 2024-003 Material Weakness Yes N
1152926 2024-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $49.10M Yes 2
14.248 Community Development Block Grants Section 108 Loan Guarantees $12.03M Yes 0
14.850 Public Housing Operating Fund $6.92M Yes 0
14.239 Home Investment Partnerships Program $4.88M Yes 0
14.872 Public Housing Capital Fund $2.12M Yes 0
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $2.02M Yes 1
14.U01 Emergency Housing Voucher $1.73M Yes 2
14.267 Continuum of Care Program $1.01M Yes 0
14.157 Supportive Housing for the Elderly $949,552 Yes 0
21.023 Emergency Rental Assistance Program $659,000 Yes 0
14.879 Mainstream Vouchers $531,730 Yes 2
14.231 Emergency Solutions Grant Program $284,124 Yes 0
14.896 Family Self-Sufficiency Program $160,366 Yes 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $67,395 Yes 0
14.191 Multifamily Housing Service Coordinators $64,483 Yes 0
14.275 Housing Trust Fund $4,965 Yes 0

Contacts

Name Title Type
H8HNL7Y96VG8 Elizabeth Napoli Auditee
6714751378 Rizalito Paglingayen Auditor
No contacts on file

Notes to SEFA

The Guam Housing and Urban Renewal Authority (GHURA), a component unit of the Government of Guam, was formed primarily to provide safe, decent, sanitary, and affordable housing for low- to moderate-income families and elderly families in the Territory of Guam. All operations of GHURA are included in the scope of the Single Audit. The U.S. Department of Housing and Urban Development is the oversight agency for GHURA’s Single Audit.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of GHURA 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 GHURA, it is not intended to and does not present the financial position, changes in net position or cash flows of GHURA.
a. Basis of Accounting For purposes of this Schedule, certain accounting procedures were followed, which help illustrate the expenditures of the individual programs. 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. Disbursements made to subrecipients related to the grant agreements are reported as expenditures. b. Subgrants Certain program funds are passed through GHURA to subrecipient organizations. The Schedule of Expenditures of Federal Awards does not contain separate schedules disclosing how the subrecipients outside of GHURA’s control utilized the funds. 3. Summary of Significant Accounting Policies, continued c. Funds Received GHURA received all the funds indicated on this Schedule in a direct capacity in Fiscal Year 2024. GHURA also administers all the funds and is responsible for compliance with the laws and regulations. d. Indirect Costs GHURA does not have an indirect cost negotiation agreement and does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance in accordance with 2 CFR §200.414.
GHURA, on behalf of the Government of Guam, has been designated the responsibility of implementing and carrying out the objectives of the HOME Program. The program is designed to increase homeownership and affordable housing opportunities for low- and very low-income Americans. HOME loan applicants that have been determined to be eligible for financial assistance are required to comply with the terms and requirements. Balances and transactions relating to the HOME program are included in GHURA’s financial statements. The balances of loans from previous years for which the federal government imposes continuing compliance requirements are included in the federal expenditures presented in the Schedule. As of September 30, 2024, the HOME and CDBG Program expenditures include $825,040 and $8,521,291 in current year disbursements and the beginning balance of HOME and CDBG loans of $4,058,424 and $220,096, with continuing compliance requirements, respectively. The balance of HOME Investment Partnerships and CDBG grant loans outstanding and recorded by GHURA on September 30, 2024 is $3,914,858 and $199,887, respectively. In December 2020, GHURA entered into a $12M loan with the U.S. Department of Housing and Urban Development to provide a source of low-cost, long-term financing loan to The Learning Institute through the Section 108 Loan Guarantee Program to construct a public facility for use as a school. The facility will be leased to the eLearn Academy Charter School by The Learning Institute. As of September 30, 2024, the Section 108 expenditures include $650,089 in current year interest expense to GHURA from The Learning Institute. The balance of the Section 108 loan outstanding and recorded by GHURA as of September 30, 2024 is $10,904,000.

Finding Details

Finding 2024-001
Finding No.: 2024-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: CDBG - Entitlement/ Special Purpose Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2023, Grant No. B22ST660001, do not agree with underlying accounting records and resulted in differences between the reported disbursements, total obligations and credit, and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. Line Item Reported Amount Auditor Calculation Per GL Details Over (Under) Reported Variance 08 Total Available $13,859,763 $12,742,302 $1,117,460 09 Disbursements other than Section 108 Repayments and Planning/Administration $6,253,357 $6,202,170 $51,188 11 Amount subject to Low/Mod Benefit $6,253,357 $6,202,170 $51,188 12 Disbursed in IDIS for Planning/Administration $268,339 $681,220 $(412,880) 15 Total Expenditures $7,856,151 $6,883,389 $972,761 16 Unexpended Balance $6,003,612 $5,858,913 $144,699 19 Disbursed for other Low/Mod activities $3,917,753 $4,798,550 $(880,797) 21 Total Low/Mod Credit $3,917,753 $4,798,550 $(880,797) 22 Percent Low/Mod Credit 63% 77% (15%) 27 Disbursed in IDIS for Public Services $330,151 $375,895 $(45,744) 31 Total PS Obligations $555,858 $375,895 $179,963 36 Percent Funds Obligated for PS Activities 17% 12% 5% 37 Disbursed in IDIS for Planning/Administration $268,339 $681,220 $(412,880) 46 Percent Funds Obligated for PA Activities Line -0.13% 21.38% (21.51%) Finding No.: 2024-001, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: CDBG - Entitlement/ Special Purpose Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Condition, continued: 2. Subawards are not reported in FSRS, as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 4 4 $3,178,901 $3,178,901 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2023-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-001
Finding No.: 2024-001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: CDBG - Entitlement/ Special Purpose Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, reported amounts in the Integrated Disbursement and Information System (IDIS) should be accurate and complete. Also, recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: 1. Certain amounts reported in PR26 – CDBG Financial Summary Report, Program Year 2023, Grant No. B22ST660001, do not agree with underlying accounting records and resulted in differences between the reported disbursements, total obligations and credit, and result in obligations for planning and administration (PA) activities exceeding the 20-percent ceiling. Line Item Reported Amount Auditor Calculation Per GL Details Over (Under) Reported Variance 08 Total Available $13,859,763 $12,742,302 $1,117,460 09 Disbursements other than Section 108 Repayments and Planning/Administration $6,253,357 $6,202,170 $51,188 11 Amount subject to Low/Mod Benefit $6,253,357 $6,202,170 $51,188 12 Disbursed in IDIS for Planning/Administration $268,339 $681,220 $(412,880) 15 Total Expenditures $7,856,151 $6,883,389 $972,761 16 Unexpended Balance $6,003,612 $5,858,913 $144,699 19 Disbursed for other Low/Mod activities $3,917,753 $4,798,550 $(880,797) 21 Total Low/Mod Credit $3,917,753 $4,798,550 $(880,797) 22 Percent Low/Mod Credit 63% 77% (15%) 27 Disbursed in IDIS for Public Services $330,151 $375,895 $(45,744) 31 Total PS Obligations $555,858 $375,895 $179,963 36 Percent Funds Obligated for PS Activities 17% 12% 5% 37 Disbursed in IDIS for Planning/Administration $268,339 $681,220 $(412,880) 46 Percent Funds Obligated for PA Activities Line -0.13% 21.38% (21.51%) Finding No.: 2024-001, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: CDBG - Entitlement/ Special Purpose Grants Cluster Federal Award No.: B22ST660001, COVID-19 B20SW660001, B20ST660001 Area: Reporting Questioned Costs: $0 Condition, continued: 2. Subawards are not reported in FSRS, as follows: Transactions Tested Subaward Not Reported Dollar Amount of Tested Transactions Subaward Not Reported 4 4 $3,178,901 $3,178,901 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost results because the variances do not represent Program overpayments. Identification as a Repeat Finding: 2023-001 Recommendation: Responsible personnel should strengthen monitoring controls over compliance with applicable reporting requirements. Prior to certifying IDIS reports, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, responsible personnel should monitor subawards for reporting in FSRS. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-002
Finding No.: 2024-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards requires the Public Housing Authorities (PHAs) to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem (FASS-PH), should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2024 do not agree with underlying accounting records, as follows: Line Item ALN Per Report Per GL Details Over- (Under-)Reported Variance 11170 Administrative Fee Equity 14.EHV $ - $ 228,117 $ (228,117) 96900 Total Operating Expenses 14.EHV $ 33,725 $ (3,082) $ (36,807) 70600 HUD PHA Operating Grants 14.EHV $ 1,847,631 $ 146,532 $ 1,701,099 11040 Prior Period Adjustments 14.871 $ 67,953 $ - $ 67,953 11170 Administrative Fee Equity 14.871 $ 1,360,376 $ 2,127,926 $ (767,550) 11180 Housing Assistance Payments Equity 14.871 $ 6,626,675 $ 3,846,366 $ 2,780,309 347 Inter Program – Due To 14.871 $ 508,535 $ 456,295 $ 52,240 11040 Prior Period Adjustments 14.879 $ 337,017 $ - $ 337,017 70600 HUD PHA Operating Grants 14.879 $ 486,666 $ 439,024 $ 47,642 144 Inter Program Due From 14.879 $ 338,821 $ - $ 338,821 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, FY 2022, and FY 2023 financial information in the FASS-PH are yet to be certified. Finding No.: 2024-002, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-002
Finding No.: 2024-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards requires the Public Housing Authorities (PHAs) to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem (FASS-PH), should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2024 do not agree with underlying accounting records, as follows: Line Item ALN Per Report Per GL Details Over- (Under-)Reported Variance 11170 Administrative Fee Equity 14.EHV $ - $ 228,117 $ (228,117) 96900 Total Operating Expenses 14.EHV $ 33,725 $ (3,082) $ (36,807) 70600 HUD PHA Operating Grants 14.EHV $ 1,847,631 $ 146,532 $ 1,701,099 11040 Prior Period Adjustments 14.871 $ 67,953 $ - $ 67,953 11170 Administrative Fee Equity 14.871 $ 1,360,376 $ 2,127,926 $ (767,550) 11180 Housing Assistance Payments Equity 14.871 $ 6,626,675 $ 3,846,366 $ 2,780,309 347 Inter Program – Due To 14.871 $ 508,535 $ 456,295 $ 52,240 11040 Prior Period Adjustments 14.879 $ 337,017 $ - $ 337,017 70600 HUD PHA Operating Grants 14.879 $ 486,666 $ 439,024 $ 47,642 144 Inter Program Due From 14.879 $ 338,821 $ - $ 338,821 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, FY 2022, and FY 2023 financial information in the FASS-PH are yet to be certified. Finding No.: 2024-002, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-002
Finding No.: 2024-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards requires the Public Housing Authorities (PHAs) to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem (FASS-PH), should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2024 do not agree with underlying accounting records, as follows: Line Item ALN Per Report Per GL Details Over- (Under-)Reported Variance 11170 Administrative Fee Equity 14.EHV $ - $ 228,117 $ (228,117) 96900 Total Operating Expenses 14.EHV $ 33,725 $ (3,082) $ (36,807) 70600 HUD PHA Operating Grants 14.EHV $ 1,847,631 $ 146,532 $ 1,701,099 11040 Prior Period Adjustments 14.871 $ 67,953 $ - $ 67,953 11170 Administrative Fee Equity 14.871 $ 1,360,376 $ 2,127,926 $ (767,550) 11180 Housing Assistance Payments Equity 14.871 $ 6,626,675 $ 3,846,366 $ 2,780,309 347 Inter Program – Due To 14.871 $ 508,535 $ 456,295 $ 52,240 11040 Prior Period Adjustments 14.879 $ 337,017 $ - $ 337,017 70600 HUD PHA Operating Grants 14.879 $ 486,666 $ 439,024 $ 47,642 144 Inter Program Due From 14.879 $ 338,821 $ - $ 338,821 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, FY 2022, and FY 2023 financial information in the FASS-PH are yet to be certified. Finding No.: 2024-002, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-003
Finding No.: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2024 Trial Balance (TB) did not agree with the audited ending balances per the FY2023 Single Audit Report (SAR). We noted variances, as follows: Account ALN Per 2024 TB Per 2023 SAR Over- (Under-)Recorded Variance Housing Assistance Payments Equity (Deficit) 14.EHV $ 233,457 $ - $ (233,457) Administrative Fee Equity (Deficit) 14.HCC $ (229,709) $ (603,753) $ (374,044) Administrative Fee Equity (Deficit) 14.871 $ 6,874,931 $ (13,329,305) $ 20,204,236 Housing Assistance Payments Equity (Deficit) 14.871 $ (3,250,625) $ 6,729,955 $ (9,980,580) Administrative Fee Equity (Deficit) 14.879 $ - $ (35,651) $ (35,651) Housing Assistance Payments Equity (Deficit) 14.879 $ 154,055 $ (35,651) $ (189,706) Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is not in compliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-004 Finding No.: 2024-003, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-003
Finding No.: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2024 Trial Balance (TB) did not agree with the audited ending balances per the FY2023 Single Audit Report (SAR). We noted variances, as follows: Account ALN Per 2024 TB Per 2023 SAR Over- (Under-)Recorded Variance Housing Assistance Payments Equity (Deficit) 14.EHV $ 233,457 $ - $ (233,457) Administrative Fee Equity (Deficit) 14.HCC $ (229,709) $ (603,753) $ (374,044) Administrative Fee Equity (Deficit) 14.871 $ 6,874,931 $ (13,329,305) $ 20,204,236 Housing Assistance Payments Equity (Deficit) 14.871 $ (3,250,625) $ 6,729,955 $ (9,980,580) Administrative Fee Equity (Deficit) 14.879 $ - $ (35,651) $ (35,651) Housing Assistance Payments Equity (Deficit) 14.879 $ 154,055 $ (35,651) $ (189,706) Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is not in compliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-004 Finding No.: 2024-003, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Refer to GHURA’s corrective action plan.
Finding 2024-003
Finding No.: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2024 Trial Balance (TB) did not agree with the audited ending balances per the FY2023 Single Audit Report (SAR). We noted variances, as follows: Account ALN Per 2024 TB Per 2023 SAR Over- (Under-)Recorded Variance Housing Assistance Payments Equity (Deficit) 14.EHV $ 233,457 $ - $ (233,457) Administrative Fee Equity (Deficit) 14.HCC $ (229,709) $ (603,753) $ (374,044) Administrative Fee Equity (Deficit) 14.871 $ 6,874,931 $ (13,329,305) $ 20,204,236 Housing Assistance Payments Equity (Deficit) 14.871 $ (3,250,625) $ 6,729,955 $ (9,980,580) Administrative Fee Equity (Deficit) 14.879 $ - $ (35,651) $ (35,651) Housing Assistance Payments Equity (Deficit) 14.879 $ 154,055 $ (35,651) $ (189,706) Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is not in compliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-004 Finding No.: 2024-003, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Refer to GHURA’s corrective action plan.