Finding 403172 (2023-002)

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 Authority drew $947,971 from the MTW budget line but did not implement MTW during the fiscal year.
Impacted Requirements: The Authority failed to meet HUD compliance by reporting draws under the wrong Assistance Listing Number (ALN).
Recommended Follow-Up: Future draws should be paused until MTW is fully implemented across all programs.

Finding Text

Capital Fund Program Grants Draws Under Moving to Work (MTW) Budget Lines HUD Moving to Work (MTW) is a separate Assistance Listing Number (ALN). The Authority is transitioning to MTW from traditional Capital Fund Program. During they year the Authority drew capital funds from CFP year 2022 under MTW code 1492, however did not implement MTW during the year. The Authority drew $947,971 of capital funds under 1492 MTW budget line, however did not implement MTW during the fiscal year. The 2022 CFP grant of approximately $2.4 million is all budgeted 1492 MTW and the Authority has spent $0.9 million of the budget. Due to changes in staff, and other programs not ready to implement MTW the Authority did not meet the HUD compliance requirements. The Authority reported Capital Fund draws under 14.872 ALN instead of 14.881 ALN (MTW) in the Schedule of Federal Awards and Financial Datat Schedules (FDS). Furture draws should not be spent until MTW is implemented across the Authority total programs (Public Housing, Housing Choice Voucher and Capital Fund). Management agree with the findings see Corrective Action Plan (CAP)

Corrective Action Plan

Finding# 2023-002 Capital Fund Program Grants Draws Under Moving to Work (MTW) Budget Lines 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, MTW grant funds was drawn down however not accounted for under the MTW budget line. All senior level leadership positions have since been filled, and the responsibility for monitoring all current awards to determine their status and alignment with federal funding requirements have been assigned to the appropriate the staff. Anticipated Completion Date: The monitoring of Capital Fund Program Grants Draws to Moving To Work Budget Lines is ongoing. Contact Person: Alphonso Bradley, Executive Director

Other Findings in this Audit

403171 2023-001

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