FAC Explorer

Audit 47515

FY End
2022-12-31
Total Expended
$21.03M
Findings
4
Programs
7
Organization: Springfield Housing Authority (IL)
Year: 2022 Accepted: 2023-08-02
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47049 2022-001 Significant Deficiency Yes E
47050 2022-002 Significant Deficiency - N
623491 2022-001 Significant Deficiency Yes E
623492 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $14.13M Yes 0
14.850 Public and Indian Housing $3.58M Yes 1
14.872 Public Housing Capital Fund $1.95M - 0
14.879 Mainstream Vouchers $957,732 Yes 0
14.896 Family Self-Sufficiency Program $224,018 Yes 1
14.871 Ehv - Section 8 Housing Choice Vouchers $122,796 Yes 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $62,387 - 0

Contacts

Name Title Type
XVA9J5NGADB7 Jackie L. Newman Auditee
2177535757 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 December 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 Springfield Housing Authority provided no federal awards to subrecipients during the fiscal year ending December 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 Springfield Housing Authority received no federal awards of non-monetary assistance that are required to be disclosed for the year ended December 31, 2022.?The Springfield Housing Authority had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended December 31, 2022.?The Springfield Housing Authority maintains the following limits of insurance as of December 31, 2022:Property$50,000,000Liability$ 5,000,000Commercial Auto$ 5,000,000Worker CompensationStatutoryPublic Officials$ 5,000,000Public Employee Dishonesty$ 300,000Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2022-001
Finding 2022-001 ? Public Housing Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency Low Income Public Housing ? Subsidy ? ALN #14.850 Condition & Cause: Our review of fifty (50) Public Housing tenant files revealed that there was a total of eleven (11) income-related errors, which represent 22% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Public Housing population. These consisted mainly of improper deductions, omissions of income on the 50058, and improper annualization of income. The remaining one (1) file error was a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. Criteria: The Code of Federal regulations, the Housing Authority?s ACOP, and specific HUD guidelines in documenting and maintaining the Public Housing tenant files. Effect: The failure to properly calculate the dwelling rental income charged to a resident can result in a misstatement of operating income and corresponding operating subsidy earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Public Housing program to determine whether there are any misstatements of rental income. We also recommend that the Agency increase their monitoring and review of the Public Housing program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-002
Finding 2022-002 ? Family Self Sufficiency Program ? Special Provisions ? Noncompliance & Significant Deficiency Family Self Sufficiency Program ? ALN#14.896 Condition: We reviewed a total of twenty (20) FSS participant files, ten (10) under the Public Housing program and ten (10) under the HCV program. Per the FSS Action Plan, the Authority should maintain contact with each participant on a monthly basis, as well as maintaining records of each participant?s goals. We found that nine (9) of the participants had not been in consistent contact with their assigned specialist, some of these as far back as 2020. We found three (3) files in which the applicable Individual Training and Service Plans (ITSP?s) were not signed by the participant. We also noted that there was a lack of documentation that participants graduating from the program had met their goals. The Authority is not in compliance with CFR 984.303 Contract of Participation. They are also not following the internal policies governing FSS administration regarding monthly check-ins with the participants. Criteria: Regulations at 24 CFR 984.303 outline the requirements of the FSS program. Each participating FSS family must enter into a Contract of Participation with the PHA, which stipulates interim and final goals. This should include the ITSP for the head of household. The Authority?s internal policy also dictates that the Authority should maintain contact with the participants on a monthly basis. Cause: Controls over the administration of the FSS program do not appear to be in place or operating effectively. Effect: When the program is not maintained in compliance with 24 CFR 984.303 this can result in a possible error in retaining a client on the program. Consequently, when it is not clear whether a client should remain on the program there might be an error from rent and HAP payment amounts. Additionally, as a result of noncompliance the expenditures in a program may be disallowed and the grant income recovered. Recommendation: We recommend that the Authority maintain proper records relating to the participant?s goals under the program. We also recommend that the Authority maintain consistent contact with all program participants. Consistent contact ensures participants are meeting program and personal goals, as well as providing participants with effective support when needed, while proper documentation is pertinent to valid and accurate disbursement of escrow funds upon completion of the program. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-001
Finding 2022-001 ? Public Housing Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency Low Income Public Housing ? Subsidy ? ALN #14.850 Condition & Cause: Our review of fifty (50) Public Housing tenant files revealed that there was a total of eleven (11) income-related errors, which represent 22% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Public Housing population. These consisted mainly of improper deductions, omissions of income on the 50058, and improper annualization of income. The remaining one (1) file error was a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. Criteria: The Code of Federal regulations, the Housing Authority?s ACOP, and specific HUD guidelines in documenting and maintaining the Public Housing tenant files. Effect: The failure to properly calculate the dwelling rental income charged to a resident can result in a misstatement of operating income and corresponding operating subsidy earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Public Housing program to determine whether there are any misstatements of rental income. We also recommend that the Agency increase their monitoring and review of the Public Housing program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-002
Finding 2022-002 ? Family Self Sufficiency Program ? Special Provisions ? Noncompliance & Significant Deficiency Family Self Sufficiency Program ? ALN#14.896 Condition: We reviewed a total of twenty (20) FSS participant files, ten (10) under the Public Housing program and ten (10) under the HCV program. Per the FSS Action Plan, the Authority should maintain contact with each participant on a monthly basis, as well as maintaining records of each participant?s goals. We found that nine (9) of the participants had not been in consistent contact with their assigned specialist, some of these as far back as 2020. We found three (3) files in which the applicable Individual Training and Service Plans (ITSP?s) were not signed by the participant. We also noted that there was a lack of documentation that participants graduating from the program had met their goals. The Authority is not in compliance with CFR 984.303 Contract of Participation. They are also not following the internal policies governing FSS administration regarding monthly check-ins with the participants. Criteria: Regulations at 24 CFR 984.303 outline the requirements of the FSS program. Each participating FSS family must enter into a Contract of Participation with the PHA, which stipulates interim and final goals. This should include the ITSP for the head of household. The Authority?s internal policy also dictates that the Authority should maintain contact with the participants on a monthly basis. Cause: Controls over the administration of the FSS program do not appear to be in place or operating effectively. Effect: When the program is not maintained in compliance with 24 CFR 984.303 this can result in a possible error in retaining a client on the program. Consequently, when it is not clear whether a client should remain on the program there might be an error from rent and HAP payment amounts. Additionally, as a result of noncompliance the expenditures in a program may be disallowed and the grant income recovered. Recommendation: We recommend that the Authority maintain proper records relating to the participant?s goals under the program. We also recommend that the Authority maintain consistent contact with all program participants. Consistent contact ensures participants are meeting program and personal goals, as well as providing participants with effective support when needed, while proper documentation is pertinent to valid and accurate disbursement of escrow funds upon completion of the program. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.