FAC Explorer

Finding 43887 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 45962
Organization: Eastern Regional Housing Authority (NM)
Auditor: Kriegel/gray/shaw & CO PC

AI Summary

  • Core Issue: Equity balances for Section 8 Housing Choice Vouchers were not accurately maintained between Administrative Fee Equity and HAP Equity.
  • Impacted Requirements: The PHA must properly account for program activities as per the ACC, ensuring accurate records for equity roll-forward.
  • Recommended Follow-Up: The PHA should correct the account balances in HUD FDS and VMS records by March 31, 2023.

Finding Text

2022-002 Noncompliance with Special Tests and Provisions ? Rolling forward equity balances (Other Non-Compliance) Federal Program Information: Questioned Costs: Finding Agency: Department of Housing and Urban Development None Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Compliance Requirement: Special Tests and Provisions Condition ? The equity balances for Section 8 Housing Choice Vouchers were not properly maintained between Administrative Fee Equity and HAP Equity. Criteria ? The ACC requires PHA to properly account for program activity ? records and accounting transactions support a proper roll-forward of equity. Cause ? Confusion caused by the absorbtion of Tucumcari HA Section 8 program that included balances later determined to be administrative fee equity per discussion with HUD. PHA was accustomed to expending all administrative fees and therefore incorrectly assumed the same for the year of absorbtion of Tucumcari Section 8 Housing. Effect ? Potential that PHA is not funded correctly. Recommendation ? The PHA should correct the account balances. Management Response ? The staff shall correct the account balances, specifically in the HUD FDS and VMS records. Estimated Completion Date: March 31, 2023 Responsible Party: Deputy Director

Corrective Action Plan

2022-001 (2021-002) Late Audit Report ? Other Non-Compliance Repeated with modification. Condition ? The audit report was submitted after September 30, 2022. The Housing Authority worked with the auditor to complete the audit timely; but, due to the complexity of accounting issues resulting from absorbtions and the early due date the auditor was unable to meet deadline. Management Response - Eastern Regional Housing Authority will work with the auditor to find workable solutions for the next audit. Estimated Completion Date: September 30, 2023 Responsible Party: Deputy Director 2022-002Noncompliance with Special Tests and Provisions ? Rolling forward equity balances (Other Non-Compliance) Federal Program Information: Questioned Costs: Finding Agency: Department of Housing and Urban Development None Program Title: Section 8 Housing Choice Vouchers CFDA Number: 14.871 Compliance Requirement: Special Tests and Provisions Condition ? The equity balances for Section 8 Housing Choice Vouchers were not properly maintained between Administrative Fee Equity and HAP Equity. Management Response ? The staff shall correct the account balances, specifically in the HUD FDS and VMS records. Estimated Completion Date: March 31, 2023 Responsible Party: Deputy Director

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.15M
14.898 Ross Supportive Services Programs $173,002
14.871 Section 8 Housing Choice Vouchers $22,212
14.850 Public and Indian Housing $11,484