FAC Explorer

Audit 8545

FY End
2023-03-31
Total Expended
$30.39M
Findings
2
Programs
8
Organization: Housing Authority of the City of Huntsville (MD)
Year: 2023 Accepted: 2023-12-27
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6619 2023-001 Significant Deficiency - E
583061 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $7.56M Yes 1
14.872 Public Housing Capital Fund $5.47M Yes 0
14.871 Section 8 Housing Choice Vouchers $799,659 - 0
14.896 Family Self-Sufficiency Program $321,823 - 0
14.879 Mainstream Vouchers $302,976 - 0
14.267 Continuum of Care Program $280,662 - 0
17.274 Youthbuild $217,257 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $94,036 - 0

Contacts

Name Title Type
LZM5PD52JKV3 Teresa Wade Auditee
2565325632 Daniel Sefick 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 principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Huntsville Housing Authority (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 2 CFR 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 principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Of the federal expenditures presented in the accompanying schedule, the Authority provided federal awards to a subrecipient (Huntsville-Madison County Mental Health Board, Inc.) in the amount of $280,662 under the Continuum of Care program (Assistance Listing #14.267) for the year ended March 31, 2023.
Title: Noncash Federal Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable and available. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority did not receive any noncash federal assistance for the year ended March 31, 2023.

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Public and Indian Housing Assistance Listing Number: 14.850 Award Period: April 1, 2022 – March 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, tenant and other family members must provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 960.259). For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (a) reported family annual income, (b) the value of assets, (c) expenses related to deductions from annual income, and (d) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 960.259). Condition: Exceptions were noted in 1 out of 40 tenant files tested. Annual income was not calculated utilizing all underlying supporting documentation maintained in the file. Questioned costs: Unable to determine. Context: 40 tenant files were selected from a population of over 250. Cause: Income was inadvertently excluded from the calculation. The Authority’s internal control did not identify the error. Effect: The Authority is not in compliance with eligibility compliance requirements. The tenant’s portion of rent may not be calculated correctly. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over review of annual income calculations to ensure compliance with eligibility requirements. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Public and Indian Housing Assistance Listing Number: 14.850 Award Period: April 1, 2022 – March 31, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, tenant and other family members must provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 960.259). For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (a) reported family annual income, (b) the value of assets, (c) expenses related to deductions from annual income, and (d) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 960.259). Condition: Exceptions were noted in 1 out of 40 tenant files tested. Annual income was not calculated utilizing all underlying supporting documentation maintained in the file. Questioned costs: Unable to determine. Context: 40 tenant files were selected from a population of over 250. Cause: Income was inadvertently excluded from the calculation. The Authority’s internal control did not identify the error. Effect: The Authority is not in compliance with eligibility compliance requirements. The tenant’s portion of rent may not be calculated correctly. Repeat Finding: No Recommendation: We recommend that the Authority reviews its internal controls over review of annual income calculations to ensure compliance with eligibility requirements. Views of responsible officials: There is no disagreement with the audit finding.