FAC Explorer

Audit 375748

FY End
2025-03-31
Total Expended
$5.18M
Findings
2
Programs
5
Organization: North Providence Housing Authority (RI)
Year: 2025 Accepted: 2025-12-18
Auditor: CBIZ CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165260 2025-001 Material Weakness Yes N
1165261 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.42M Yes 1
14.850 PUBLIC HOUSING OPERATING FUND $591,762 Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $579,678 Yes 0
14.879 MAINSTREAM VOUCHERS $494,540 Yes 1
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $98,615 Yes 0

Contacts

Name Title Type
H3UCHYNZ4K63 Marilee Arsenault Auditee
4017280930 Michael Guyder Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of North Providence Housing Authority, under programs of the federal government for the year ended March 31, 2025. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of North Providence Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of North Providence Housing Authority.
Expenditures reported on the schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned.
The North Providence Housing Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
2025-001 – SPECIAL TESTS AND PROVISIONS: PAYMENT STANDARDS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 – Housing Voucher Cluster CRITERIA Per 24 CFR § 982.503 and HUD Housing Choice Voucher Program guidance, public housing authorities (PHAs) must provide tenants with at least a 12-month waiting period before decreasing payment standards for households currently receiving assistance. The decreased payment standard is to be applied at the family’s next annual reexamination after the waiting period. CONDITION During our testing of the Housing Voucher Cluster, we noted the Authority decreased payment standards. The decreased standards were applied immediately to current tenant rent calculations for 12 files we reviewed, without observing the required 12-month waiting period. Tenants who should have retained the higher payment standard until their next annual reexamination were subject to a reduced subsidy and higher rent share prior to the allowed timeframe. CAUSE The Authority did not have adequate procedures in place to ensure compliance with HUD requirements for implementing decreases in payment standards, resulting in premature application of new standards. EFFECT Tenants’ rent portions increased earlier than allowed, potentially resulting in financial hardship and noncompliance with federal regulations. The Authority is at risk for HUD sanctions and may be required to make retroactive subsidy adjustments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 40 from a population of 230. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority implement internal controls to ensure that any future decrease in payment standards is not applied to current participants until the required waiting period has elapsed. The Authority should review all affected cases and, if necessary, make retroactive corrections to tenant rent calculations and subsidy amounts. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.