FAC Explorer

Audit 8104

FY End
2023-03-31
Total Expended
$3.81M
Findings
2
Programs
3
Organization: Housing Authority of the City of New Smyrna Beach (FL)
Year: 2023 Accepted: 2023-12-21
Auditor: Malcolm Johnson & Company P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6172 2023-001 Significant Deficiency - N
582614 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.879 Mainstream Vouchers $641,161 - 0
14.881 Moving to Work Demonstration Program $409,122 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $148,461 - 0

Contacts

Name Title Type
EXNRMLLFPER8 Teresa Pope Auditee
3864288171 Malcolm Johnson Auditor
No contacts on file

Notes to SEFA

Accounting Policies: A.Basis of Accounting This schedule is prepared on the accrual basis of accounting. B.Basis of Presentation The accompanying Schedule of Federal Awards (the Schedule) includes the federal grant activity of the Authority under programs of the federal government for the year ended March 31, 2023. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance, Title 2 CFR, Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards". 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. De Minimis Rate Used: N Rate Explanation: C. Other Matters - Indirect Costs The Authority has not elected to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.

Finding Details

Finding 2023-001
2023-001 Condition: Deficiencies Noted in SEMAP Compliance Assistance Listing #: 14.881 Questioned Costs: None Criteria: 24 CFR 985.507 states that “The PHA may not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent.” Cause/Effect: The PHA did not have sufficient internal controls in place to ensure that each rent change or new move in voucher had a rent reasonableness documentation in the file. The Authority was not in compliance with rent reasonableness requirements. Recommendation: We recommend the Authority adjust its procedures to ensure that all new leases and rent increases have a determination of rent reasonableness and the documentation is retained in the files for review. Reply: We concur with this finding and the Auditor’s recommendation. We will adjust our procedures to ensure that all new leases and rent increases have a determination of rent reasonableness and the documentation is retained in the files for review. Management will implement procedures to clear this finding in FY 2024.
Finding 2023-001
2023-001 Condition: Deficiencies Noted in SEMAP Compliance Assistance Listing #: 14.881 Questioned Costs: None Criteria: 24 CFR 985.507 states that “The PHA may not approve a lease until the PHA determines that the initial rent to owner is a reasonable rent.” Cause/Effect: The PHA did not have sufficient internal controls in place to ensure that each rent change or new move in voucher had a rent reasonableness documentation in the file. The Authority was not in compliance with rent reasonableness requirements. Recommendation: We recommend the Authority adjust its procedures to ensure that all new leases and rent increases have a determination of rent reasonableness and the documentation is retained in the files for review. Reply: We concur with this finding and the Auditor’s recommendation. We will adjust our procedures to ensure that all new leases and rent increases have a determination of rent reasonableness and the documentation is retained in the files for review. Management will implement procedures to clear this finding in FY 2024.