FAC Explorer

Audit 415469

FY End
2026-03-31
Total Expended
$6.18M
Findings
2
Programs
3
Organization: Housing Authority of the City of Meadville (PA)
Year: 2026 Accepted: 2026-10-29
Auditor: SMITH MARION & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1241305 2026-001 Material Weakness Yes N
1241306 2026-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.872 PUBLIC HOUSING CAPITAL FUND $3.98M Yes 1
14.850 PUBLIC HOUSING OPERATING FUND $1.21M Yes 0
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $990,449 Yes 1

Contacts

Name Title Type
EGTLUZK5WWX8 Jon Auditee
8143363177 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 the City of Meadville (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
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 2026-001
Questioned Costs: None. Criteria:The U.S. Department of Housing and Urban Development Capital Fund Guidebook states that the PHA can draw funds up to, but not more than, 3 days in advance of a valid expense and should draw the amount needed to cover such costs. Condition:The PHA did not spend CFP money that was drawn down within the 3 day window. Context:We noted that the PHA has deferred CFP revenue account of $24,399, which indicates that the CFP money drawn down from the 2022H CFP grant had not yet been spent. Cause:The PHA had a lack of proper internal control procedures surrounding the cash management of the CFP program. Effect:The lack of controls surrounding the cash management caused the PHA to have unspent CFP money at year end. Recommendations:Establish proper CFP internal controls to ensure proper handling of CFP draw downs. Fund drawn after payment or very near payment date of related purchases. Management Views:Management Agrees. See corrective action plan.
Finding 2026-002
Questioned Costs: None. Criteria:The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register. (24 CFR section 982.158 and 24 CFR part 982, subpart K).Condition: During our audit, we noticed on nine different occasions that the monthly HAP payment did not agree with what was reported on the HAP contracts. Context:The Authority has roughly 172 vouchers issued through out the fiscal year under examination which would translate to 2,061 housing assistance payment transactions for the year. Of these we reviewed 40 individual housing assistance payment transactions, and found 9 instances of noncompliance. Extrapolating the error rate we would assume a 22.5% error rate or 464 total payment issues. Cause: Internal controls were not in place to ensure that the HAP contracts agree with what is being paid out.Effect:The Authority over paid the HAP contracts resulting in them being out of compliance. Recommendations: Management should develop monitoring procedures to ensure that the HAP amount agrees to the HAP contractsManagement Views:Management Agrees. See corrective action plan.