FAC Explorer

Audit 51971

FY End
2022-09-30
Total Expended
$12.29M
Findings
4
Programs
12
Organization: Housing Authority of the City of Greenville (NC)
Year: 2022 Accepted: 2023-06-27
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59941 2022-001 Significant Deficiency - E
59942 2022-002 Material Weakness - E
636383 2022-001 Significant Deficiency - E
636384 2022-002 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $4.23M Yes 1
14.871 Section 8 Housing Choice Vouchers $4.06M Yes 0
14.872 Public Housing Capital Fund $1.63M Yes 0
14.267 Continuum of Care Program $827,762 Yes 1
14.241 Housing Opportunities for Persons with Aids $484,321 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $331,176 - 0
14.879 Mainstream Vouchers $200,554 Yes 0
14.896 Family Self-Sufficiency Program $200,260 - 0
14.871 Ehv - Section 8 Housing Choice Vouchers $189,783 Yes 0
90.U19 Covid-19 - Housing Stability Counseling Program - Cares Act $77,985 - 0
14.169 Housing Counseling Assistance Program $34,280 - 0
97.024 Emergency Food and Shelter National Board Program $28,454 - 0

Contacts

Name Title Type
PAJSZFX6DWC4 Shanetta Moye Auditee
2523294000 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 September 30, 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 Housing Authority provided no federal awards to subrecipients during the fiscal year ending September 30, 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 Greenville received no federal awards of non-monetary assistance that are required to be disclosed for the year ended September 30, 2022. ?The Housing Authority of the City of Greenville had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended September 30, 2022.?The Housing Authority of the City of Greenville maintains the following limits of insurance as of September 30, 2022:Property$92,307,789General Liability$ 5,000,000Commercial Auto$ 5,000,000Workers Compensation StatutoryPublic Officials Legal Liability$ 5,000,000Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2022-001
Finding 2022-001 ? Low-Income Public Housing Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency - ALN 14.850 Low-Income Public Housing ? Subsidy Condition & Cause: Our review of thirty-five (35) Low-Income Public Housing tenant files revealed the following discrepancies: three (3) instances of improper income calculation or verification; two (2) tenant files with unverified or omitted deductions from annual income; and one (1) annual recertification that was completed four months after the anniversary date. We were able to numerically extrapolate three (3) of these errors to the program population. Based on our calculations, we found the potential misstatement to be roughly $36,015, or 1.58% of dwelling rental income, which is immaterial to the financial statements. Additionally, we noted eighteen (18) files in which Form 9886 (Consent for Release of Information) was not signed by the tenant and PHA staff proceeded to obtain third party verification. This occurred because the authority conducted many of the annual recertifications via phone interview during the fiscal year as a precaution for COVID-19. Criteria: The Code of Federal Regulations 24 part 5, the Housing Authority?s Admissions and Continued Occupancy Policy, and specific HUD guidelines in documenting and maintaining the Low-Income Public Housing tenant files. Effect: The failure to properly calculate tenant income and rental charge can result in a misstatement of dwelling rental 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 Low-Income Public Housing program to determine whether there are any errors in the matter of rental income. We also recommend that the Agency increase their monitoring and review of the Low-Income Public Housing program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: In our sample, we calculated $1,807 in overcharged rent throughout the fiscal year. Our sample size is 5.02% of the population. Using extrapolation, we can estimate a potential misstatement in dwelling rental income of roughly $36,015. Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-002
Finding 2022-002 ? Continuum of Care Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Material Weakness - ALN 14.267 Continuum of Care Program ? Subsidy Condition & Cause: We selected a sample of five (5) files for review. We noted that these tenant files were constructed for the purpose of the audit. We requested an additional sample of four (4) tenant files, and we discovered that the tenant files are not maintained contemporaneously. Of the additional sample, staff was able to locate files current through 2019 for two (2) of the tenants and was able to verify that 2021 and 2022 annual recertifications were completed in their software for three (3) of the tenants. Staff was unable to furnish the annual recertification documentation for these actions. A second review 30 days later revealed that the deficiency had not been corrected. We requested a new sample of ten (10) tenant files. Staff was unable to provide any of the tenant files in a timely manner. We reviewed the tenant ledgers and noted three (3) tenants who had ended participation but remained on the HAP register, and one (1) tenant whose ledger revealed a discrepancy with the HAP register. Criteria: The Code of Federal Regulations 24 part 578, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Continuum of Care tenant files. Effect: The failure to properly document and retain tenant files can result in loss of grant funding earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Continuum of Care program and maintain these records contemporaneously. We also recommend that the Agency increase their monitoring and review of the Continuum of Care program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. 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 ? Low-Income Public Housing Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Significant Deficiency - ALN 14.850 Low-Income Public Housing ? Subsidy Condition & Cause: Our review of thirty-five (35) Low-Income Public Housing tenant files revealed the following discrepancies: three (3) instances of improper income calculation or verification; two (2) tenant files with unverified or omitted deductions from annual income; and one (1) annual recertification that was completed four months after the anniversary date. We were able to numerically extrapolate three (3) of these errors to the program population. Based on our calculations, we found the potential misstatement to be roughly $36,015, or 1.58% of dwelling rental income, which is immaterial to the financial statements. Additionally, we noted eighteen (18) files in which Form 9886 (Consent for Release of Information) was not signed by the tenant and PHA staff proceeded to obtain third party verification. This occurred because the authority conducted many of the annual recertifications via phone interview during the fiscal year as a precaution for COVID-19. Criteria: The Code of Federal Regulations 24 part 5, the Housing Authority?s Admissions and Continued Occupancy Policy, and specific HUD guidelines in documenting and maintaining the Low-Income Public Housing tenant files. Effect: The failure to properly calculate tenant income and rental charge can result in a misstatement of dwelling rental 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 Low-Income Public Housing program to determine whether there are any errors in the matter of rental income. We also recommend that the Agency increase their monitoring and review of the Low-Income Public Housing program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: In our sample, we calculated $1,807 in overcharged rent throughout the fiscal year. Our sample size is 5.02% of the population. Using extrapolation, we can estimate a potential misstatement in dwelling rental income of roughly $36,015. Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-002
Finding 2022-002 ? Continuum of Care Tenant Files ? Eligibility ? Internal Control over Tenant Files ? Noncompliance and Material Weakness - ALN 14.267 Continuum of Care Program ? Subsidy Condition & Cause: We selected a sample of five (5) files for review. We noted that these tenant files were constructed for the purpose of the audit. We requested an additional sample of four (4) tenant files, and we discovered that the tenant files are not maintained contemporaneously. Of the additional sample, staff was able to locate files current through 2019 for two (2) of the tenants and was able to verify that 2021 and 2022 annual recertifications were completed in their software for three (3) of the tenants. Staff was unable to furnish the annual recertification documentation for these actions. A second review 30 days later revealed that the deficiency had not been corrected. We requested a new sample of ten (10) tenant files. Staff was unable to provide any of the tenant files in a timely manner. We reviewed the tenant ledgers and noted three (3) tenants who had ended participation but remained on the HAP register, and one (1) tenant whose ledger revealed a discrepancy with the HAP register. Criteria: The Code of Federal Regulations 24 part 578, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Continuum of Care tenant files. Effect: The failure to properly document and retain tenant files can result in loss of grant funding earned by the Housing Authority. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Continuum of Care program and maintain these records contemporaneously. We also recommend that the Agency increase their monitoring and review of the Continuum of Care program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. 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.