FAC Explorer

Audit 394748

FY End
2025-06-30
Total Expended
$41.03M
Findings
1
Programs
9
Organization: Housing Authority of the City of Waterbury (CT)
Year: 2025 Accepted: 2026-03-26
Auditor: CBIZ CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1187058 2025-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $27.98M Yes 0
14.850 PUBLIC AND INDIAN HOUSING $5.26M Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $3.97M Yes 1
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $1.59M Yes 0
14.879 MAINSTREAM VOUCHERS $1.54M Yes 0
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $420,000 Yes 0
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $130,406 Yes 0
14.888 LEAD-BASED PAINT CAPITAL FUND PROGRAM $77,907 Yes 0
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $64,340 Yes 0

Contacts

Name Title Type
LBB9DNZXFHJ4 Christian D'orso Auditee
2035962640 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 Housing Authority of the City of Waterbury, under programs of the federal government for the year ended June 30, 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 Housing Authority of the City of Waterbury, it is not intended to and does not present the financial position, changes in net position or cash flows of Housing Authority of the City of Waterbury.
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 Housing Authority of the City of Waterbury has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
2025-001 – ACTIVITIES ALLOWED OR UNALLOWED Material Noncompliance / Material Weakness U.S. Department of Housing and Urban Development ALN #: 14.872 – Public Housing Capital Fund CRITERIA A PHA may use Capital Funds for operating costs only if it is included in the CFP 5-Year Action Plan that is approved by the PHA Board of Commissioners and HUD… A PHA with 250 or more units may use no more than 20 percent of its annual Capital Fund grant for activities that are eligible under the Operating Fund at 24 CFR part 990. (24 CFR 905.314 (I)) CONDITION Prior to year-end audit adjustments, the Authority recorded unearned revenue related to the 2023 and 2024 Capital Fund Formula Grants drawdowns for operations on the Central Office Cost Center. This amount should have been reflected as revenue on the public housing programs. CAUSE The Authority’s internal controls did not prevent the misunderstanding of the guidance contained in HUD’s Capital Fund Guidebook related to the use of Capital Funds for operations and the Authority incorrectly recorded the draw down for capital funds for operating costs. EFFECT As a result, prior to adjustments, the financial position of the public housing programs appeared to be worse off than it actually was which could lead management to make decisions that are not in the best interest of the Public Housing program. QUESTIONED COSTS None identified as the Public Housing Program was reimbursed. CONTEXT We selected a sample of 15 transactions charged to the Capital Fund Program from a population of approximately 150 transactions. This represented approximately 81% of Capital Fund Program Costs. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority enhance internal controls to ensure a review by those involved with the project the guidance contained in HUD’s Capital Fund Guidebook and the requirements of 24 CFR 905.202 related to eligible costs of the Capital Fund Program. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.