FAC Explorer

Finding 396529 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-05-13
Audit: 306118
Organization: Mental Health Association in Orange County, Inc. (NY)
Auditor: Nugent and Haeussler PC

AI Summary

  • Core Issue: The Organization used outdated rent calculation worksheets that did not reflect current utility rates, violating compliance with HUD requirements.
  • Impacted Requirements: Non-compliance with 24 CFR Section 578.77 regarding reasonable rental rates affects tenant charges and HUD grant allocations.
  • Recommended Follow-Up: Implement written procedures for tracking program changes and regularly update calculation worksheets to ensure ongoing compliance.

Finding Text

Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions U.S. Department of Housing and Urban Development Direct Program Program Name: Continuum of Care AL#: 14.267 Condition: For 2022, the Organization used rent calculation worksheets which had not been updated for the published utility rates for the area, or calculated based on HUD’s Utility Allowance Handbook. Criteria: Per 24 CFR Section 578.77, the share of rent allowed to be charged to the tenant takes into consideration household income, size of the family and a credit for utilities included in the lease. Context: 20 cases from a total population of 40 were selected for testing. The utility rates were out of date on all files tested. Cause: The Organization did not update their records and calculation worksheets for the change in the published utility rates or self- calculate the rates based on the Utility Allowance Handbook. Effect: The Organization is not in compliance with the requirements of the Continuum of Care program with respect to Special Test Requirements for Reasonable Rental Rates. The calculation of the correct tenant’s portion impacts the balance paid by the Organization and subsequently charged to the HUD grants. Recommendation: We recommend that written procedures addressing internal controls with respect to tracking changes in program requirements be implemented and that procedures to update any worksheets for the effect of those requirements be performed and verified to ensure that the Organization is in compliance at all times. View of Responsible Officials: Mental Health Association in Orange County Inc.’s (MHA) management concurs with this finding. The Organization is in the process of implementing procedures to ensure that compliance is maintained in the future. Please refer to the corrective action plan on pages 13 - 14.

Categories

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

Other Findings in this Audit

  • 396507 2022-001
    Significant Deficiency
  • 396508 2022-002
    Significant Deficiency
  • 396509 2022-003
    Significant Deficiency
  • 396510 2022-001
    Significant Deficiency
  • 396511 2022-002
    Significant Deficiency
  • 396512 2022-003
    Significant Deficiency
  • 396513 2022-001
    Significant Deficiency
  • 396514 2022-002
    Significant Deficiency
  • 396515 2022-003
    Significant Deficiency
  • 396516 2022-001
    Significant Deficiency
  • 396517 2022-002
    Significant Deficiency
  • 396518 2022-003
    Significant Deficiency
  • 396519 2022-001
    Significant Deficiency
  • 396520 2022-002
    Significant Deficiency
  • 396521 2022-003
    Significant Deficiency
  • 396522 2022-001
    Significant Deficiency
  • 396523 2022-002
    Significant Deficiency
  • 396524 2022-003
    Significant Deficiency
  • 396525 2022-001
    Significant Deficiency
  • 396526 2022-002
    Significant Deficiency
  • 396527 2022-003
    Significant Deficiency
  • 396528 2022-001
    Significant Deficiency
  • 396530 2022-003
    Significant Deficiency
  • 396531 2022-001
    Significant Deficiency
  • 396532 2022-002
    Significant Deficiency
  • 396533 2022-003
    Significant Deficiency
  • 396534 2022-001
    Significant Deficiency
  • 396535 2022-002
    Significant Deficiency
  • 396536 2022-003
    Significant Deficiency
  • 396537 2022-001
    Significant Deficiency
  • 396538 2022-002
    Significant Deficiency
  • 396539 2022-003
    Significant Deficiency
  • 972949 2022-001
    Significant Deficiency
  • 972950 2022-002
    Significant Deficiency
  • 972951 2022-003
    Significant Deficiency
  • 972952 2022-001
    Significant Deficiency
  • 972953 2022-002
    Significant Deficiency
  • 972954 2022-003
    Significant Deficiency
  • 972955 2022-001
    Significant Deficiency
  • 972956 2022-002
    Significant Deficiency
  • 972957 2022-003
    Significant Deficiency
  • 972958 2022-001
    Significant Deficiency
  • 972959 2022-002
    Significant Deficiency
  • 972960 2022-003
    Significant Deficiency
  • 972961 2022-001
    Significant Deficiency
  • 972962 2022-002
    Significant Deficiency
  • 972963 2022-003
    Significant Deficiency
  • 972964 2022-001
    Significant Deficiency
  • 972965 2022-002
    Significant Deficiency
  • 972966 2022-003
    Significant Deficiency
  • 972967 2022-001
    Significant Deficiency
  • 972968 2022-002
    Significant Deficiency
  • 972969 2022-003
    Significant Deficiency
  • 972970 2022-001
    Significant Deficiency
  • 972971 2022-002
    Significant Deficiency
  • 972972 2022-003
    Significant Deficiency
  • 972973 2022-001
    Significant Deficiency
  • 972974 2022-002
    Significant Deficiency
  • 972975 2022-003
    Significant Deficiency
  • 972976 2022-001
    Significant Deficiency
  • 972977 2022-002
    Significant Deficiency
  • 972978 2022-003
    Significant Deficiency
  • 972979 2022-001
    Significant Deficiency
  • 972980 2022-002
    Significant Deficiency
  • 972981 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.982 Mental Health Disaster Assistance and Emergency Mental Health $139,460
93.958 Block Grants for Community Mental Health Services $55,734
16.575 Crime Victim Assistance $38,534
21.023 Emergency Rental Assistance Program $32,422
93.136 Injury Prevention and Control Research and State and Community Based Programs $27,898
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $18,710
14.267 Continuum of Care Program $15,944
21.027 Coronavirus State and Local Fiscal Recovery Funds $9,584
16.017 Sexual Assault Services Formula Program $9,327
10.558 Child and Adult Care Food Program $297
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $151