FAC Explorer

Audit 9948

FY End
2023-06-30
Total Expended
$7.22M
Findings
2
Programs
7
Organization: Housing Authority of Billings, Montana (MT)
Year: 2023 Accepted: 2024-01-05
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7606 2023-002 Significant Deficiency - N
584048 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $4.70M Yes 1
14.850 Public and Indian Housing $948,823 - 0
14.879 Mainstream Vouchers $230,903 Yes 0
14.872 Public Housing Capital Fund $203,386 - 0
14.896 Family Self-Sufficiency Program $80,610 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $79,310 - 0
21.023 Emergency Rental Assistance Program $35,959 - 0

Contacts

Name Title Type
DMTBCJFPNJK3 Patti Webster Auditee
4062371916 Aaron Ness Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. No federal financial assistance has been provided to subrecipients. De Minimis Rate Used: N Rate Explanation: The Authority does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Housing Authority of Billings, Montana (the Authority) under programs of the federal government for the year ended June 30, 2023. The information 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 position, or cash flows of the Authority.

Finding Details

Finding 2023-002
Department of Housing and Urban Development CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – 2023 Special Tests and Provisions ‐ HQS Enforcement Significant Deficiency in Internal Control over Compliance Criteria – For units under a HAP contract that fail to meet HQS requirements, the PHA must require the owner to correct life threatening HQS deficiencies within 24 hours after the inspection and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the landlord does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition – During our testing of compliance for HQS Enforcement, we identified 1 instance in which the landlord did not correct the cited HQS deficiencies within the specified correction period and the Housing Authority of Billings, Montana failed to abate the HAP payment timely. Cause – The Housing Authority of Billings, Montana’s internal controls related to the proper abating of HAP payments was not operating as designed. Effect – A weakness in internal control over compliance resulted in the Housing Authority of Billings, Montana failing to abate the HAP payments to a landlord as required by HUD. Questioned Costs – None reported. Context/Sampling – A non‐statistical sample of 33 failed inspections were selected for testing. 1 out of the 33 failed inspections did not have the HAP payment abated timely. Repeat Finding from Prior Year – No. Recommendation – We recommend that the Housing Authority of Billings, Montana establish controls to ensure that HAP payments are abated timely. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-002
Department of Housing and Urban Development CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – 2023 Special Tests and Provisions ‐ HQS Enforcement Significant Deficiency in Internal Control over Compliance Criteria – For units under a HAP contract that fail to meet HQS requirements, the PHA must require the owner to correct life threatening HQS deficiencies within 24 hours after the inspection and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the landlord does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition – During our testing of compliance for HQS Enforcement, we identified 1 instance in which the landlord did not correct the cited HQS deficiencies within the specified correction period and the Housing Authority of Billings, Montana failed to abate the HAP payment timely. Cause – The Housing Authority of Billings, Montana’s internal controls related to the proper abating of HAP payments was not operating as designed. Effect – A weakness in internal control over compliance resulted in the Housing Authority of Billings, Montana failing to abate the HAP payments to a landlord as required by HUD. Questioned Costs – None reported. Context/Sampling – A non‐statistical sample of 33 failed inspections were selected for testing. 1 out of the 33 failed inspections did not have the HAP payment abated timely. Repeat Finding from Prior Year – No. Recommendation – We recommend that the Housing Authority of Billings, Montana establish controls to ensure that HAP payments are abated timely. Views of Responsible Officials – Management agrees with the finding.