Finding 403171 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-06-27

Audit: 310315

Organization: Housing Authority of Florence (AL)

Auditor: Scmo

AI Summary

Core Issue: The Housing Authority only spent about 50% of the obligated Emergency Safety and Security grant funds within the required 24 months.
Impacted Requirements: Funds must be obligated within 1 year and fully expended within 2 years as per HUD guidelines.
Recommended Follow-Up: Monitor future contracts closely to ensure compliance and prevent returning unspent funds to HUD.

Finding Text

Emergency Safety and Security grants should be managed in the same manner as grants provided by the Department for unforeseeable or unpreventable emergenciesunder 24 C.F.R § 905.204. Therefore, PHAs have 1 year to obligate and 2 years to expend Emergency Safety and Security grant funds. Additional guidance from PIH notice 2023-10 The Housing Authority obligated the funds within time frame above however only spent approximately 50% of the obligated funds with the 24 months. The 2021 Emergancy CFP grant of approximately $2.3 million was obligated within 12 months however only approximately $1.96 million was expended withing the 24 month period resulting in $0.3 million being returned to HUD. Due to changes in staff, disagreements with contractors the obligated funds were not spent in time to meet the HUD compliance requirements. The Housing Authority was required to return the unspent funds after 24 months . Furture contracts should be monitored closely to ensure compliance with HUD guidelines to avoid returning significant portion of grants to HUD. Management agree with the findings see Corrective Action Plan (CAP)

Corrective Action Plan

Finding# 2023-001 During the past year, the Housing Authority experienced a high turnover rate amongst the-senior level executive staff. Due to numerous vacancies, and changes in executive level responsibilities, the account associated with the disbursement end date of August 2, 2023 regarding the Florence Sewer Grant was overlooked. Since then all senior level leadership positions have been filled, and the responsibility for monitoring all grant funding deadlines have been assigned to the appropriate staff. The monitoring of grant deadlines is ongoing. Per 24 CFR 905.204, PHAs have 1 year to obligate and 2 years to expend Emergency Safety and Security grant funds. Anticipated Completion Date: The Housing Authority was required to return the unspent after 24 months. Funds unavailable or use.

Other Findings in this Audit

403172 2023-002

Significant Deficiency
979613 2023-001

Significant Deficiency
979614 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$4.46M
14.872	Public Housing Capital Fund	$3.65M
14.850	Public and Indian Housing	$3.17M
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$71,427