Audit 43850

FY End
2022-12-31
Total Expended
$1.62M
Findings
6
Programs
3
Year: 2022 Accepted: 2023-09-25

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
42243 2022-001 Material Weakness - I
42244 2022-002 Material Weakness - N
42245 2022-003 Material Weakness Yes N
618685 2022-001 Material Weakness - I
618686 2022-002 Material Weakness - N
618687 2022-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $770,021 Yes 1
14.871 Section 8 Housing Choice Vouchers $755,446 Yes 2
14.872 Public Housing Capital Fund $89,776 - 0

Contacts

Name Title Type
YB7CGJHNHJ77 Andrew Kott Auditee
7404460251 Denise Blair, CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Gallia Metropolitan Housing Authority, Gallia county (the Authority) under programs of the federal government for the year ended December 31, 2022. The information on this Schedule is prepared 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 the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2 CFR 200.317 - 200.327 sets procurement standards for non-federal entities other than states. These non-federal entities must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. According to the Authority's Procurement Policy, for small purhcases from $3,501 to $50,000, no less than three offerors shall be solicited to submit price quotations, which may be obtained orally by telephone, or in writing, as allowed by State and local laws. Further, contracts shall not be awarded to debarred, suspended, or ineliglbe contracts. Due to deficiencies in the Authority's internal controls over compliance requireements, eight percent of the procurements tested did not follwo the Authority's policy in regards to procurement as they did not obtain and maintain price quotations for small purchases. The Authority should review the uniform guidance regulations over procurement and consider increasing their thresholds based on uniform guidiance guidelines. Further, the Authority should follow their policy and procedures for procurement.
24 CFR sections 982.158(f)(7) provides that the Public Housing Authority (PHA) must keep records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract). 24 CFR sections 982.54(d)(15) provides the Public Housing Authority (PHA) administrative plan must cover policies on the method of determining that rent to owner is a reasonable rent (initially and during the term of a Housing Assistance Payment contract). The Authority?s Housing Choice Voucher Administrative Plan Section 13(5)(c) provides the Authority will retain the following in the tenant file: 1. Request for Lease Approval 2. Lease 3. Inspection report(s) 4. Certification of Rent Reasonableness 5. Executed contract. The Authority could not provide the reasonable rent certifications for 44 percent of the current tenant files tested for the Housing Choice Voucher program. The tenants lacking this certification in their file had been in the program for several years or were new to the program in 2022. The Authority also could not provide the reasonable rent certification for 67 percent of the new participant tenant files tested for the Housing Choice Voucher Program. The tenants lacking this certification in their file had been admitted into the program during 2022. The failure to document rent reasonableness could lead to future questioned costs, reduced future federal funding, and the requirement to repay the U.S. Department of Housing and Urban Development. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation and meet the requirements for rent reasonableness.
24 CFR section 982.158(d) provides that the Public Housing Authority (PHA) must prepare a unit inspection report. Further, 24 CFR section 982.405(a) provides that the PHA must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS. The Authority did not perform housing quality inspections in 2022 for 87.5 percent of the current tenant files tested for the Housing Choice Voucher program. The failure to perform housing quality inspections could lead to future questioned costs, reduced future federal funding, and the requirement to repay the U.S. Department of Urban development. The Executive Director and Housing Choice Voucher Manager should ensure all tenant files maintain the appropriate documentation and meet the requirements for inspections.
2 CFR 200.317 - 200.327 sets procurement standards for non-federal entities other than states. These non-federal entities must use their own documented procurement procedures, which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. Small purchase procedures are used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold. According to the Authority's Procurement Policy, for small purhcases from $3,501 to $50,000, no less than three offerors shall be solicited to submit price quotations, which may be obtained orally by telephone, or in writing, as allowed by State and local laws. Further, contracts shall not be awarded to debarred, suspended, or ineliglbe contracts. Due to deficiencies in the Authority's internal controls over compliance requireements, eight percent of the procurements tested did not follwo the Authority's policy in regards to procurement as they did not obtain and maintain price quotations for small purchases. The Authority should review the uniform guidance regulations over procurement and consider increasing their thresholds based on uniform guidiance guidelines. Further, the Authority should follow their policy and procedures for procurement.
24 CFR sections 982.158(f)(7) provides that the Public Housing Authority (PHA) must keep records to document the basis for PHA determination that rent to owner is a reasonable rent (initially and during the term of a HAP contract). 24 CFR sections 982.54(d)(15) provides the Public Housing Authority (PHA) administrative plan must cover policies on the method of determining that rent to owner is a reasonable rent (initially and during the term of a Housing Assistance Payment contract). The Authority?s Housing Choice Voucher Administrative Plan Section 13(5)(c) provides the Authority will retain the following in the tenant file: 1. Request for Lease Approval 2. Lease 3. Inspection report(s) 4. Certification of Rent Reasonableness 5. Executed contract. The Authority could not provide the reasonable rent certifications for 44 percent of the current tenant files tested for the Housing Choice Voucher program. The tenants lacking this certification in their file had been in the program for several years or were new to the program in 2022. The Authority also could not provide the reasonable rent certification for 67 percent of the new participant tenant files tested for the Housing Choice Voucher Program. The tenants lacking this certification in their file had been admitted into the program during 2022. The failure to document rent reasonableness could lead to future questioned costs, reduced future federal funding, and the requirement to repay the U.S. Department of Housing and Urban Development. The Executive Director and Housing Choice Voucher employees should ensure all tenant files maintain the appropriate documentation and meet the requirements for rent reasonableness.
24 CFR section 982.158(d) provides that the Public Housing Authority (PHA) must prepare a unit inspection report. Further, 24 CFR section 982.405(a) provides that the PHA must inspect the unit leased to a family prior to the initial term of the lease, at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS. The Authority did not perform housing quality inspections in 2022 for 87.5 percent of the current tenant files tested for the Housing Choice Voucher program. The failure to perform housing quality inspections could lead to future questioned costs, reduced future federal funding, and the requirement to repay the U.S. Department of Urban development. The Executive Director and Housing Choice Voucher Manager should ensure all tenant files maintain the appropriate documentation and meet the requirements for inspections.