Finding 1081771 (2024-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-12
Audit: 327974
Organization: City of Concord (NC)

AI Summary

  • Core Issue: The City failed to comply with tenant participation fund requirements due to an expired agreement and inadequate internal controls.
  • Impacted Requirements: Funds must be provided to elected resident councils under a current written agreement, including a budget and accountability measures.
  • Recommended Follow-Up: Management should secure a new agreement and establish controls to ensure proper accounting of tenant participation funds.

Finding Text

Non-Material Non‐Compliance Significant Deficiency, Special Tests and Provisions Criteria: In accordance with 24 CFR 964.150, when tenant participation funds are provided to a Public Housing Authority (PHA), the PHA must provide those funds to duly elected resident councils. Funding provided by a PHA to a duly elected resident council may be made only under a written agreement between the PHA and the resident council that includes a resident council budget. The agreement must require the local resident councils to account to the PHA for the use of the funds and permit the PHA to inspect and audit the resident council’s financial records related to the agreement. Condition: The City did not follow procedures to ensure compliance of tenant participation fund requirements. Context: The tenant participation fund agreement was not current and expired in 2018. We sampled 7 expenditure and supporting documentation reported to the PHA to determine if resident council expenditure is consistent with the resident council budget. We noted that 4 (58%) expenditures had proper supporting documentations but were not listed in the resident council budget. Effect: Expenditure made that are not consistent with the resident council budget. Cause: Lack of proper internal control over tenant participation funds. Questioned Cost: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Likely questioned costs do not exceed $25,000. Recommendation: Management should obtain a current agreement and implement controls to ensure that tenant participation funds are in place and properly accounted for. Views of Responsible Officials and Planned Corrective Actions: The City agrees with this finding. Please refer to the Corrective Action Plan section of this report.

Categories

HUD Housing Programs Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 505327 2024-001
    Significant Deficiency
  • 505328 2024-003
    Material Weakness
  • 505329 2024-004
    Significant Deficiency
  • 505330 2024-002
    Material Weakness
  • 1081769 2024-001
    Significant Deficiency
  • 1081770 2024-003
    Material Weakness
  • 1081772 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.507 Federal Transit Formula Grants $2.06M
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $1.69M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.26M
14.850 Public Housing Operating Fund $962,424
14.218 Community Development Block Grants/entitlement Grants $460,765
20.205 Highway Planning and Construction $295,218
14.871 Section 8 Housing Choice Vouchers $176,228
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $159,793
14.239 Home Investment Partnerships Program $124,802
14.239 Covid-19 Home Investment Partnerships Program -American Rescue Plan $117,820
14.218 Covid-19 Community Development Block Grants/entitlement Grants $98,847
16.922 Equitable Sharing Program $92,476
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $76,625
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $66,498
14.872 Public Housing Capital Fund $61,538
16.710 Public Safety Partnership and Community Policing Grants $51,690
14.896 Family Self-Sufficiency Program $24,068
16.738 Edward Byrne Memorial Justice Assistance Grant Program $22,050
20.600 State and Community Highway Safety $19,139
16.607 Bulletproof Vest Partnership Program $18,035