The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-003-Procurement Policy Not Followed- Procurement Criteria and Specific Requirement The Authority should follow its Procurement Policy, federal and state regulations. Condition Found For purchases or expenditures that exceed $1,001 but are less than $100,000, the Authority should follow small purchase procedures. These procedures require the Authority to obtain a reasonable number of quotes, but preferably at least three. We noted a minimum of eighteen disbursements, that ranged from $1,663 to $14,600. The total reviewed for these was $95,813. We were not able to review any quotes for these. Cause The cause is unknown. We do note that the Executive Director did not begin until May 25, 2022. Effect Documentation is not as strong as needed to show the best price and quality was obtained. Recommendation The Authority should make every effort to follow its Procurement Policy. Management needs to obtain a Proof of Insurance from the proposers. When it is not possible to obtain written quotes, telephone calls and/or e-mails should be utilized. The date, person, and amount quoted, and any other relevant factors should be noted in written notes. When it appears impossible to obtain multiple quotes, we suggest a contractor in a nearby town be contacted. Inquire as to what they charge for that locality, with knowledge that travel costs will likely price them out of the Authority?s area. Even when only one quote is obtained, management must always make sure the amount is reasonable. Origination Date and Prior Year Reference The finding originated in the prior year ended September 30, 2021. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871 and Low Rent-CDFA#14.850- Special Tests Finding 2022-004-Underfunded Defined Contribution Plan Criteria and Specific Requirement To be in compliance with the Authority?s Plan Document for its Defined Contribution Plan, the Authority is required to contribute 7.5% of salaries for eligible, participating employees to the Plan on a timely basis. In addition, participating employees are required to contribute 5.5% of their salaries each payroll period. Condition Found For the years ended September 30, 2020 and 2021, the estimated underpayments were approximately $2,700 and $1,300, respectively. In the current year, we note an additional estimated under-payment of $2,634. Cause Unknown. Effect Federal regulations were not complied with. In addition, state and federal ERISA (Employment Retirement Security Act) rules were not complied with. Recommendation Management should provide the complete salary history paid since October 1, 2019 for all employees to the plan administrator. Hopefully this has already been partially done, since this was first an audit finding for the 2020 audit report that was released in late 2022. Plan administrators have software to build spreadsheets to figure the exact underpayments, whereas our numbers are estimates. Management should make sure that 5.5% of each paid salary is withheld from the participating employee paycheck and remitted, per Plan provisions. The Plan requires the Authority to pay 7.5% of each salary paid. Origination Date The finding originated in the prior year. For the 2020 audit, this was a management letter comment. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Capital Fund-CDFA#14.872 2022-002-Capital Fund Deadlines Not Met-Period of Performance and Reporting Criteria or Specific Requirement (a)-24 CFR Section 905 requires that at least 90% of the annual CFP grant be obligated within 2 years and fully expended within 4 years from the date that the funds were made available. (b)-24 CFR Section 905 also requires that the Actual Modernization Cost Certificate (AMCC) and the accompanying final, attached costs breakdown be issued no later than twelve months after the expenditure deadline. Condition Found (a)-HUD notified the Authority by letter that an insufficient amount of the CFP 2018 program was drawn down by the obligation deadline of May 28, 2022. We noted previously that the current E.D. did not start until May 25, 2022. (b)-As of the year end of this audit, September 30, 2022, the 2016 CFP program had been closed at least for four years. The AMCC and final costs breakdown have not been issued. Cause Unknown. Effect Federal regulations were not complied with. In addition, the sooner the funds are drawn down, if not spent, they are invested. The sooner the funds are invested, the more interest income there is earned. Recommendation CFP funds should be timely obligated. This involves contracted amounts, not just an oral agreement or understanding. CFP funds should be timely expended. AMCCs and the final attached costs breakdowns should be issued on a timely basis. Per the HUD letter, HUD is offering the Authority an opportunity to minimize the penalty for missing the obligation deadline if the PHA obligates 90% of the CFP that is in non-compliance, by May 28, 2023. The Authority should make sure it does this, if it has not already. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We will comply with the auditor?s recommendation.
Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-003-Procurement Policy Not Followed- Procurement Criteria and Specific Requirement The Authority should follow its Procurement Policy, federal and state regulations. Condition Found For purchases or expenditures that exceed $1,001 but are less than $100,000, the Authority should follow small purchase procedures. These procedures require the Authority to obtain a reasonable number of quotes, but preferably at least three. We noted a minimum of eighteen disbursements, that ranged from $1,663 to $14,600. The total reviewed for these was $95,813. We were not able to review any quotes for these. Cause The cause is unknown. We do note that the Executive Director did not begin until May 25, 2022. Effect Documentation is not as strong as needed to show the best price and quality was obtained. Recommendation The Authority should make every effort to follow its Procurement Policy. Management needs to obtain a Proof of Insurance from the proposers. When it is not possible to obtain written quotes, telephone calls and/or e-mails should be utilized. The date, person, and amount quoted, and any other relevant factors should be noted in written notes. When it appears impossible to obtain multiple quotes, we suggest a contractor in a nearby town be contacted. Inquire as to what they charge for that locality, with knowledge that travel costs will likely price them out of the Authority?s area. Even when only one quote is obtained, management must always make sure the amount is reasonable. Origination Date and Prior Year Reference The finding originated in the prior year ended September 30, 2021. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Housing Choice Voucher-CDFA#14.871 and Low Rent-CDFA#14.850- Special Tests Finding 2022-004-Underfunded Defined Contribution Plan Criteria and Specific Requirement To be in compliance with the Authority?s Plan Document for its Defined Contribution Plan, the Authority is required to contribute 7.5% of salaries for eligible, participating employees to the Plan on a timely basis. In addition, participating employees are required to contribute 5.5% of their salaries each payroll period. Condition Found For the years ended September 30, 2020 and 2021, the estimated underpayments were approximately $2,700 and $1,300, respectively. In the current year, we note an additional estimated under-payment of $2,634. Cause Unknown. Effect Federal regulations were not complied with. In addition, state and federal ERISA (Employment Retirement Security Act) rules were not complied with. Recommendation Management should provide the complete salary history paid since October 1, 2019 for all employees to the plan administrator. Hopefully this has already been partially done, since this was first an audit finding for the 2020 audit report that was released in late 2022. Plan administrators have software to build spreadsheets to figure the exact underpayments, whereas our numbers are estimates. Management should make sure that 5.5% of each paid salary is withheld from the participating employee paycheck and remitted, per Plan provisions. The Plan requires the Authority to pay 7.5% of each salary paid. Origination Date The finding originated in the prior year. For the 2020 audit, this was a management letter comment. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Housing Choice Voucher-CDFA#14.871 and Low Rent-CDFA#14.850- Special Tests Finding 2022-004-Underfunded Defined Contribution Plan Criteria and Specific Requirement To be in compliance with the Authority?s Plan Document for its Defined Contribution Plan, the Authority is required to contribute 7.5% of salaries for eligible, participating employees to the Plan on a timely basis. In addition, participating employees are required to contribute 5.5% of their salaries each payroll period. Condition Found For the years ended September 30, 2020 and 2021, the estimated underpayments were approximately $2,700 and $1,300, respectively. In the current year, we note an additional estimated under-payment of $2,634. Cause Unknown. Effect Federal regulations were not complied with. In addition, state and federal ERISA (Employment Retirement Security Act) rules were not complied with. Recommendation Management should provide the complete salary history paid since October 1, 2019 for all employees to the plan administrator. Hopefully this has already been partially done, since this was first an audit finding for the 2020 audit report that was released in late 2022. Plan administrators have software to build spreadsheets to figure the exact underpayments, whereas our numbers are estimates. Management should make sure that 5.5% of each paid salary is withheld from the participating employee paycheck and remitted, per Plan provisions. The Plan requires the Authority to pay 7.5% of each salary paid. Origination Date The finding originated in the prior year. For the 2020 audit, this was a management letter comment. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-003-Procurement Policy Not Followed- Procurement Criteria and Specific Requirement The Authority should follow its Procurement Policy, federal and state regulations. Condition Found For purchases or expenditures that exceed $1,001 but are less than $100,000, the Authority should follow small purchase procedures. These procedures require the Authority to obtain a reasonable number of quotes, but preferably at least three. We noted a minimum of eighteen disbursements, that ranged from $1,663 to $14,600. The total reviewed for these was $95,813. We were not able to review any quotes for these. Cause The cause is unknown. We do note that the Executive Director did not begin until May 25, 2022. Effect Documentation is not as strong as needed to show the best price and quality was obtained. Recommendation The Authority should make every effort to follow its Procurement Policy. Management needs to obtain a Proof of Insurance from the proposers. When it is not possible to obtain written quotes, telephone calls and/or e-mails should be utilized. The date, person, and amount quoted, and any other relevant factors should be noted in written notes. When it appears impossible to obtain multiple quotes, we suggest a contractor in a nearby town be contacted. Inquire as to what they charge for that locality, with knowledge that travel costs will likely price them out of the Authority?s area. Even when only one quote is obtained, management must always make sure the amount is reasonable. Origination Date and Prior Year Reference The finding originated in the prior year ended September 30, 2021. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871 and Low Rent-CDFA#14.850- Special Tests Finding 2022-004-Underfunded Defined Contribution Plan Criteria and Specific Requirement To be in compliance with the Authority?s Plan Document for its Defined Contribution Plan, the Authority is required to contribute 7.5% of salaries for eligible, participating employees to the Plan on a timely basis. In addition, participating employees are required to contribute 5.5% of their salaries each payroll period. Condition Found For the years ended September 30, 2020 and 2021, the estimated underpayments were approximately $2,700 and $1,300, respectively. In the current year, we note an additional estimated under-payment of $2,634. Cause Unknown. Effect Federal regulations were not complied with. In addition, state and federal ERISA (Employment Retirement Security Act) rules were not complied with. Recommendation Management should provide the complete salary history paid since October 1, 2019 for all employees to the plan administrator. Hopefully this has already been partially done, since this was first an audit finding for the 2020 audit report that was released in late 2022. Plan administrators have software to build spreadsheets to figure the exact underpayments, whereas our numbers are estimates. Management should make sure that 5.5% of each paid salary is withheld from the participating employee paycheck and remitted, per Plan provisions. The Plan requires the Authority to pay 7.5% of each salary paid. Origination Date The finding originated in the prior year. For the 2020 audit, this was a management letter comment. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Capital Fund-CDFA#14.872 2022-002-Capital Fund Deadlines Not Met-Period of Performance and Reporting Criteria or Specific Requirement (a)-24 CFR Section 905 requires that at least 90% of the annual CFP grant be obligated within 2 years and fully expended within 4 years from the date that the funds were made available. (b)-24 CFR Section 905 also requires that the Actual Modernization Cost Certificate (AMCC) and the accompanying final, attached costs breakdown be issued no later than twelve months after the expenditure deadline. Condition Found (a)-HUD notified the Authority by letter that an insufficient amount of the CFP 2018 program was drawn down by the obligation deadline of May 28, 2022. We noted previously that the current E.D. did not start until May 25, 2022. (b)-As of the year end of this audit, September 30, 2022, the 2016 CFP program had been closed at least for four years. The AMCC and final costs breakdown have not been issued. Cause Unknown. Effect Federal regulations were not complied with. In addition, the sooner the funds are drawn down, if not spent, they are invested. The sooner the funds are invested, the more interest income there is earned. Recommendation CFP funds should be timely obligated. This involves contracted amounts, not just an oral agreement or understanding. CFP funds should be timely expended. AMCCs and the final attached costs breakdowns should be issued on a timely basis. Per the HUD letter, HUD is offering the Authority an opportunity to minimize the penalty for missing the obligation deadline if the PHA obligates 90% of the CFP that is in non-compliance, by May 28, 2023. The Authority should make sure it does this, if it has not already. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We will comply with the auditor?s recommendation.
Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-003-Procurement Policy Not Followed- Procurement Criteria and Specific Requirement The Authority should follow its Procurement Policy, federal and state regulations. Condition Found For purchases or expenditures that exceed $1,001 but are less than $100,000, the Authority should follow small purchase procedures. These procedures require the Authority to obtain a reasonable number of quotes, but preferably at least three. We noted a minimum of eighteen disbursements, that ranged from $1,663 to $14,600. The total reviewed for these was $95,813. We were not able to review any quotes for these. Cause The cause is unknown. We do note that the Executive Director did not begin until May 25, 2022. Effect Documentation is not as strong as needed to show the best price and quality was obtained. Recommendation The Authority should make every effort to follow its Procurement Policy. Management needs to obtain a Proof of Insurance from the proposers. When it is not possible to obtain written quotes, telephone calls and/or e-mails should be utilized. The date, person, and amount quoted, and any other relevant factors should be noted in written notes. When it appears impossible to obtain multiple quotes, we suggest a contractor in a nearby town be contacted. Inquire as to what they charge for that locality, with knowledge that travel costs will likely price them out of the Authority?s area. Even when only one quote is obtained, management must always make sure the amount is reasonable. Origination Date and Prior Year Reference The finding originated in the prior year ended September 30, 2021. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Housing Choice Voucher-CDFA#14.871 and Low Rent-CDFA#14.850- Special Tests Finding 2022-004-Underfunded Defined Contribution Plan Criteria and Specific Requirement To be in compliance with the Authority?s Plan Document for its Defined Contribution Plan, the Authority is required to contribute 7.5% of salaries for eligible, participating employees to the Plan on a timely basis. In addition, participating employees are required to contribute 5.5% of their salaries each payroll period. Condition Found For the years ended September 30, 2020 and 2021, the estimated underpayments were approximately $2,700 and $1,300, respectively. In the current year, we note an additional estimated under-payment of $2,634. Cause Unknown. Effect Federal regulations were not complied with. In addition, state and federal ERISA (Employment Retirement Security Act) rules were not complied with. Recommendation Management should provide the complete salary history paid since October 1, 2019 for all employees to the plan administrator. Hopefully this has already been partially done, since this was first an audit finding for the 2020 audit report that was released in late 2022. Plan administrators have software to build spreadsheets to figure the exact underpayments, whereas our numbers are estimates. Management should make sure that 5.5% of each paid salary is withheld from the participating employee paycheck and remitted, per Plan provisions. The Plan requires the Authority to pay 7.5% of each salary paid. Origination Date The finding originated in the prior year. For the 2020 audit, this was a management letter comment. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.
The current Executive Director did not begin her employ until May 25, 2022. Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850 and Capital Fund-CDFA#14.872 2022-001-Fidelity-Surety Bond Is Not In effect-Special Tests Criteria or Specific Requirement Federal regulations require that a fidelity, also called a surety bond, is always in effect. This covers the Authority in the event of a monetary loss due to fraud committed by a common law employee. The bond can be a position bond, which names each employee. Preferably the bond should be a blanket, which covers all employees without naming them. Condition Found It appears that the bond was cancelled a few years ago due to non-payment. Cause Unknown. Effect The risk of fraud loss is not minimized by insurance, as good business practices and HUD regulations require. Recommendation The Authority should obtain a blanket bond policy. The amount of dollar coverage is subjective. However, we recommend a minimum of $30,000 per year. Origination Date The finding originated in the year ended September 30, 2020. View of Responsible Official We obtained, effective November 18, 2022, a blanket surety bond with coverage of $30,000.
Housing Choice Voucher-CDFA#14.871 and Low Rent-CDFA#14.850- Special Tests Finding 2022-004-Underfunded Defined Contribution Plan Criteria and Specific Requirement To be in compliance with the Authority?s Plan Document for its Defined Contribution Plan, the Authority is required to contribute 7.5% of salaries for eligible, participating employees to the Plan on a timely basis. In addition, participating employees are required to contribute 5.5% of their salaries each payroll period. Condition Found For the years ended September 30, 2020 and 2021, the estimated underpayments were approximately $2,700 and $1,300, respectively. In the current year, we note an additional estimated under-payment of $2,634. Cause Unknown. Effect Federal regulations were not complied with. In addition, state and federal ERISA (Employment Retirement Security Act) rules were not complied with. Recommendation Management should provide the complete salary history paid since October 1, 2019 for all employees to the plan administrator. Hopefully this has already been partially done, since this was first an audit finding for the 2020 audit report that was released in late 2022. Plan administrators have software to build spreadsheets to figure the exact underpayments, whereas our numbers are estimates. Management should make sure that 5.5% of each paid salary is withheld from the participating employee paycheck and remitted, per Plan provisions. The Plan requires the Authority to pay 7.5% of each salary paid. Origination Date The finding originated in the prior year. For the 2020 audit, this was a management letter comment. View of Responsible Official We will comply with the auditor?s recommendation.
Housing Choice Voucher-CDFA#14.871, Low Rent-CDFA#14.850, and Capital Fund-CDFA#14.872 2022-005-Late Filing of the Audit Report-Reporting Criteria and Specific Requirement The independent auditor?s report is to be filed with the Legislative Auditor no later than six months after fiscal year end. The report is to be filed with HUD-REAC no later than nine months after year end. Management and the Board should review monthly financial statements on a timely basis. Condition Found The audit report was not filed by the state filing due date of March 31. Cause The auditor initially contracted to do the audits for the years ended September 2020 and September 2021 was unable to perform the audits. The current auditor executed an engagement letter-contract on August 25, 2022. The 2020 audit was finished in late 2021, and the 2021 audit was completed in January 2023. Effect State and federal regulations were not complied with. In addition, Management was not able to timely implement any recommendations included in this report. Recommendation State and federal filing due dates should be timely met. Origination Date The finding originated for the year ended September 30, 2019. View of Responsible Official We will comply with the auditor?s recommendation.