FAC Explorer

Audit 8934

FY End
2023-03-31
Total Expended
$7.44M
Findings
6
Programs
5
Organization: Charlottesville Redevelopment and Housing Authority (VA)
Year: 2023 Accepted: 2023-12-30
Auditor: Dooley & Vicars CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6939 2023-001 - - E
6940 2023-002 Significant Deficiency - L
6941 2023-003 - - N
583381 2023-001 - - E
583382 2023-002 Significant Deficiency - L
583383 2023-003 - - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $1.87M - 0
14.872 Public Housing Capital Fund $965,599 - 0
14.879 Mainstream Vouchers $331,963 Yes 0
14.871 Section 8 Housing Choice Vouchers $82,188 Yes 0
14.877 Public Housing Family Self-Sufficiency Under Resident Opportunity and Supportive Services $1,595 - 0

Contacts

Name Title Type
F2Q9UZF7XLJ6 Robert Fetrow Auditee
4344229191 Daniel Dooley Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: 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, 0 MB Circular A-87, and the State of Virginia, Office of Policy and Management, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federa l grant activity of the Charlottesville Redevelopment and Housing Auth ority under programs of the federal government for the year ended March 31 , 2023, The information is presented in accordance with the requirements ofTitle 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 operations of the Authority, it is not intended to and does not present the net position, changes in net position or cash flows of the Authority. Some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 0 MB Circular A-87, and the State of Virginia, Office of Policy and Management, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. 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, 0 MB Circular A-87, and the State of Virginia, Office of Policy and Management, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: NOTE 3: MAJOR PROGRAMS 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, 0 MB Circular A-87, and the State of Virginia, Office of Policy and Management, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The(*) to the right of a CFDA number identifies the grant as a major federal program as defined by Title 2 Part 200 (Uniform Guidance).
Title: NOTE 4: AWARD BALANCE 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, 0 MB Circular A-87, and the State of Virginia, Office of Policy and Management, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. On the Housing Choice Voucher programs, the Authority receives annual funds based on an annual estimate of need. Any Housing Assistance funds received in excess of current year payments is restricted for payment of future Housing Assistance payments.
Title: NOTE 5: INDIRECT COST RA TE 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, 0 MB Circular A-87, and the State of Virginia, Office of Policy and Management, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance. The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2023-001
Section 8 Housing Choice Vouchers Program ALN#14.871 Eligibility: Tenant ComplianceCONDITION: During the compliance audit of the Authority’s Housing Choice Voucher program we noted two tenants whose income was not verified during annual recertifications with current EIV Income Reports, as required by HUD regulations. CRITERIA:Tenants of the Housing Choice Voucher program are required to be recertified annually and on the interim basis in accordance with HUD regulations. Recertification guidelines require use of the Enterprise Income Verification (EIV) System to verify tenants’ reported incomes during annual recertifications. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: Of 40 tenant files examined, 2 files did not contain documentation that the tenants’ reported income was verified with current EIV Income Reports during annual recertifications. EFFECT: The Housing Authority could be renting to tenants who are not paying the appropriate amount of rent per program regulations. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher tenant compliance and train employees on procedures mandated by HUD regarding tenant income verification and annual recertification.
Finding 2023-002
ALN#14.871 Reporting: Noncompliance and Significant Deficiency in Internal Controls over SEMAP submission CONDITION: During the audit for the year ending March 31, 2023, it was discovered that the Authority had not submitted the SEMAP certification within 60 days of the end of the fiscal year. CRITERIA: The Uniform Financial Reporting Standards (UFRS), at 24 CFR 985.101, require Authorities to submit SEMAP certification form with 60 calendar days after the end of its fiscal year. QUESTIONED COSTS: None. CONTEXT: The SEMAP was not certified within the required time frame during the audit period. EFFECT: As a result of this noncompliance, the PHA could receive an overall performance rating of “troubled” which means the PHA will be subject to the requirements of CFR 985.107 “Required actions for PHA with troubled performance rating.” This may include: on-site reviews by HUD with written reports to follow, a corrective action plan to address any issues that HUD identified, monitoring of the corrective action plan, prohibition of use of administrative fees, and upgrading the poor performance rating via HUDs determination that a change in the rating is warranted. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher and train employees on procedures mandated by HUD regarding SEMAP completion and certification.
Finding 2023-003
ALN#14.871 Special Tests and Provisions: HQS Inspections CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the files examined, 1 file did not contain a current annual inspection report. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the inspection process of the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required.
Finding 2023-001
Section 8 Housing Choice Vouchers Program ALN#14.871 Eligibility: Tenant ComplianceCONDITION: During the compliance audit of the Authority’s Housing Choice Voucher program we noted two tenants whose income was not verified during annual recertifications with current EIV Income Reports, as required by HUD regulations. CRITERIA:Tenants of the Housing Choice Voucher program are required to be recertified annually and on the interim basis in accordance with HUD regulations. Recertification guidelines require use of the Enterprise Income Verification (EIV) System to verify tenants’ reported incomes during annual recertifications. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: Of 40 tenant files examined, 2 files did not contain documentation that the tenants’ reported income was verified with current EIV Income Reports during annual recertifications. EFFECT: The Housing Authority could be renting to tenants who are not paying the appropriate amount of rent per program regulations. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher tenant compliance and train employees on procedures mandated by HUD regarding tenant income verification and annual recertification.
Finding 2023-002
ALN#14.871 Reporting: Noncompliance and Significant Deficiency in Internal Controls over SEMAP submission CONDITION: During the audit for the year ending March 31, 2023, it was discovered that the Authority had not submitted the SEMAP certification within 60 days of the end of the fiscal year. CRITERIA: The Uniform Financial Reporting Standards (UFRS), at 24 CFR 985.101, require Authorities to submit SEMAP certification form with 60 calendar days after the end of its fiscal year. QUESTIONED COSTS: None. CONTEXT: The SEMAP was not certified within the required time frame during the audit period. EFFECT: As a result of this noncompliance, the PHA could receive an overall performance rating of “troubled” which means the PHA will be subject to the requirements of CFR 985.107 “Required actions for PHA with troubled performance rating.” This may include: on-site reviews by HUD with written reports to follow, a corrective action plan to address any issues that HUD identified, monitoring of the corrective action plan, prohibition of use of administrative fees, and upgrading the poor performance rating via HUDs determination that a change in the rating is warranted. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Housing Authority should implement greater oversight over Housing Choice Voucher and train employees on procedures mandated by HUD regarding SEMAP completion and certification.
Finding 2023-003
ALN#14.871 Special Tests and Provisions: HQS Inspections CONDITION: The Authority failed to document annual Housing Quality Standards (HQS) inspections in accordance with its Administrative Plan and HUD regulations. CRITERIA: PHAs are required to inspect units leased to Housing Choice Voucher participants at least annually and prepare unit inspection reports in accordance with 21 CFR 982.158(d). QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: 40 HAP contract files from a statistically valid sample were examined for compliance with annual HQS inspection requirements. Of the files examined, 1 file did not contain a current annual inspection report. EFFECT: The Authority is not in compliance with federal regulations regarding HQS inspections and documentation. CAUSE: The overall cause was a lack of management oversight and quality control over this program. RECOMMENDATION: The Authority should implement greater oversight over the inspection process of the Housing Choice Voucher program to ensure that annual inspections are completed and documented at least annually as required.