FAC Explorer

Audit 377917

FY End
2025-03-31
Total Expended
$11.00M
Findings
3
Programs
3
Organization: Village of Hempstead Housing Authority (NY)
Year: 2025 Accepted: 2025-12-29
Auditor: RBT CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1166806 2025-002 Material Weakness Yes ELN
1166807 2025-003 Material Weakness Yes N
1166808 2025-004 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $8.78M Yes 3
14.850 PUBLIC HOUSING OPERATING FUND $1.44M Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $786,622 Yes 0

Contacts

Name Title Type
GWXBH713REF7 Shereen Goodson Auditee
5164898500 Danielle Jennison Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Village of Hempstead Housing Authority under programs of the federal government for the year ended March 31, 2025. 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 Village of Hempstead Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of Village of Hempstead Housing Authority.
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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
The Authority has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance.
No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value and is covered by the Authority's casualty insurance policies.
The expenditures presented in the Schedule of Federal Awards reconcile to the federal aid reported in the Statement of Revenues, Expenses, and Changes in Net Position as follows:

Finding Details

Finding 2025-002
2025-002 - Documentation of Controls U.S. Department of Housing And Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers E. Eligibility, L. Reporting, and N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted that the Authority did not establish appropriate controls over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish controls over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of forty-five files tested, two files were missing a rent reasonableness form, and one file was missing documentation of the internal controls performed. Repeat Finding: This is a repeat of finding 2024-001. Recommendation: RBT recommends that the Authority establish a checklist for the Housing Coordinators to use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the Housing Coordinators preparing the checklist and by a reviewer and maintained in the tenant's file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditor's Response: See corrective action plan.
Finding 2025-003
2025-003 - HQS Enforcements U.S. Department of Housing And Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher tenant files, RBT noted that the Authority was not appropriately maintaining the listing of failed inspections to ensure follow up in accordance with HQS Enforcement. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish controls over failed HQS inspections to ensure proper HQS enforcement. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of twenty-one failed HQS inspections selected for testing, three were not properly followed up on with the landlord and payments to respective landlords were not abated as required under HUD guidelines. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a weekly/monthly list for the Housing Coordinators to use during the HQS inspection process to ensure all failed inspections are followed up on and corrected timely. The list should be signed and initialed by the coordinator weekly/monthly to track and maintain the status of all HQS inspections. This checklist will serve as documentation that all HQS requirements have been met. Auditor's Response: See corrective action plan.
Finding 2025-004
2025-004 - Reporting U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers L. Reporting - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher performance reporting, RBT noted that the Authority did not submit its Section 8 Management Assessment Program (SEMAP) report within the required HUD timeframe. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish controls over monitoring procedures to ensure timely preparation and submission of required HUD reports. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: The submission for the annual SEMAP was not done within the required timeline. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority strengthen its internal control and reporting procedures to ensure all reporting certifications are being reviewed, prepared, and submitted within the 60-day HUD deadline. Auditor's Response: See corrective action plan.