FAC Explorer

Audit 402694

FY End
2025-09-30
Total Expended
$1.61M
Findings
2
Programs
3
Organization: Housing Authority of Somerset County (PA)
Year: 2025 Accepted: 2026-06-01
Auditor: SMITHMARION&CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1216212 2025-001 Material Weakness Yes E
1216213 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.850 PUBLIC HOUSING OPERATING FUND $929,906 Yes 2
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $450,234 Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $227,684 Yes 0

Contacts

Name Title Type
E3XEWLUHD3V7 Gail Charlton Auditee
8656295147 Cole Monroe Auditor
No contacts on file

Notes to SEFA

The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Somerset County (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. This schedule also only includes the amounts expended by the Authority, none of the amount expended, if any, by the blend or discretely present component units have been included.
The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
The Authority has not elected to use the 15% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2025-001
The monetary impact needs further investigation to determine the amount for the period of non-compliance. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516) During the audit, it was noted that in four (4) instances, a family's income was not being properly recalculated according to HUD standards and updated on the 50058. This finding represents a potential weakness in internal controls within the Public Housing Program, as it was identified in four (4) files tested out of a sample of forty (40) out of a population of 2,613. This represents a 10% error rate. Internal controls were not in place to ensure that the income recalculations were being properly done and maintained. Ineligible individuals or families may be receiving rental assistance and /or tenant portion of rent paid is being incorrectly calculated based on incorrect family incomes. "Management should implement internal control procedures to ensure that all income from family members are obtained during admission and re-examination. " Management agrees with the finding, see Management's Corrective Action Plan.
Finding 2025-002
The monetary impact needs further investigation to determine the amount for the period of non-compliance. Public Housing Agencies (PHAs) must establish, calculate, and maintain utility allowances in a manner that ensures they are accurate, reasonable, and reflective of actual conditions for low-income public housing residents. (24 CFR Part 965, Subpart E (specifically §§ 965.501–965.508)) During the audit, it was noted that in two (2) instances where a tenant utility allowance was not following the PHA's utility allowance schedules. This finding represents a potential weakness in internal controls within the Public Housing Program, as it was identified in two files tested out of a sample of forty (40) out of a population of 2,613. This represents a 5% error rate. Internal controls were not in place to ensure that the utility calculations were being properly used for each tenant. Tenant may be receiving the incorrect utility allowance "Management should implement internal control procedures to ensure that utility allowances are being correctly used for each tenant according to the PHA's utility allowance schedule. " Management agrees with the finding, see Management's Corrective Action Plan.