Audit 46840

FY End
2022-03-31
Total Expended
$43.68M
Findings
2
Programs
7
Year: 2022 Accepted: 2022-10-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
44896 2022-001 Significant Deficiency - E
621338 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $35.02M Yes 1
14.850 Public and Indian Housing $4.85M Yes 0
14.872 Public Housing Capital Fund $2.28M Yes 0
14.871 Covid-19 - Section 8 Housing Choice Vouchers $589,168 Yes 0
14.871 Ehv - Section 8 Housing Choice Vouchers $549,850 Yes 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $362,186 - 0
14.850 Covid-19 - Public and Indian Housing $27,435 Yes 0

Contacts

Name Title Type
WK4SQH9ZU425 Elizabeth Edgerton Auditee
9195081350 Dale R. Rector Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government for the year ended March 31, 2022. The information in this Schedule is presented 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 assets, or cash flows of the Authority.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority provided no federal awards to subrecipients during the fiscal year ending March 31, 2022.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. ?The Housing Authority of the City of Raleigh received no federal awards of non-monetary assistance that are required to be disclosed for the year ended March 31, 2022. ?The Housing Authority of the City of Raleigh had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended March 31, 2022.?The Housing Authority of the City of Raleigh maintains the following limits of insurance as of March 31, 2022:Property Pooled coverage limit$50,000,000General Liability$ 5,000,000Commercial Auto$ 5,000,000Workers Compensation Statutory$ 1,000,000 of liabilityDirectors and Officers Liability$ 5,000,000Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.The PHAs coverage for property insurance and its contents is $50,000,000 per occurrence but the value of the insurance is pooled among all PHAs that participate in the NCHARRP coverage. The value of the PHAs property and contents is over $100,000,000 and if the PHA suffered a material loss, total loss or multiple other PHAs that participate in the insurance pool suffered a material or total loss, the PHA would not be able to rebuild the properties as they currently exist.

Finding Details

Finding 2022-001 ? Housing Choice Voucher Program Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency ? Housing Choice Voucher Program ? Subsidy CFDA #14.871 Criteria: The Code of Federal Regulations, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Condition & Cause: Our review of one hundred and twenty (120) Housing Choice Voucher tenant files revealed that there was a total of twenty-seven (27) annual recertifications completed past due, which represent 22.5% of the total files examined. Per 24 CFR 982.516(a)(1), ?the PHA must conduct a reexamination of family income and composition at least annually.? Per PIH Notice 2021-14, ?All annual reexaminations due in CY 2021 must be completed by December 31, 2021. All annual reexaminations that were due in Calendar Year 2020 (CY20) must have been completed by December 31, 2020.? There has been significant employee turnover and delays due to the Coronavirus pandemic. The Housing Authority experienced extreme difficulty in obtaining all the information necessary for the annual recertification. Also, the remedy for failure to obtain all the information is to begin the eviction procedures of the residence. This was not practically possible due to the pandemic. Effect: Failure to maintain compliance can result in loss of funding for grants and other programs which require operations to have no audit findings and noncompliance. Noncompliance can also lead to a misstatement of HAP expense, HAP equity, and the corresponding appropriation needs of the Agency. Recommendation: We recommend that the Agency determine which vouchers are not in compliance and begin enforcing both the Administrative Plan and the Code of Federal Regulations on a consistent basis.
Finding 2022-001 ? Housing Choice Voucher Program Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency ? Housing Choice Voucher Program ? Subsidy CFDA #14.871 Criteria: The Code of Federal Regulations, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Condition & Cause: Our review of one hundred and twenty (120) Housing Choice Voucher tenant files revealed that there was a total of twenty-seven (27) annual recertifications completed past due, which represent 22.5% of the total files examined. Per 24 CFR 982.516(a)(1), ?the PHA must conduct a reexamination of family income and composition at least annually.? Per PIH Notice 2021-14, ?All annual reexaminations due in CY 2021 must be completed by December 31, 2021. All annual reexaminations that were due in Calendar Year 2020 (CY20) must have been completed by December 31, 2020.? There has been significant employee turnover and delays due to the Coronavirus pandemic. The Housing Authority experienced extreme difficulty in obtaining all the information necessary for the annual recertification. Also, the remedy for failure to obtain all the information is to begin the eviction procedures of the residence. This was not practically possible due to the pandemic. Effect: Failure to maintain compliance can result in loss of funding for grants and other programs which require operations to have no audit findings and noncompliance. Noncompliance can also lead to a misstatement of HAP expense, HAP equity, and the corresponding appropriation needs of the Agency. Recommendation: We recommend that the Agency determine which vouchers are not in compliance and begin enforcing both the Administrative Plan and the Code of Federal Regulations on a consistent basis.