Finding Reference Number: SA2019-008 Internal Controls
• Name(s) of the contact person: Gabino Arredondo, Interim RHA Executive Director
• Corrective Action Plan: Completed. Increase finance staff members assigned to RHA financial matters and implement City of Richmond best practice finance controls and procedures to ensure that there is an internal control environment in compliance with the federal requirements. The City hired effective April 25, 2019, a Financial Consultant to oversee the financials of the RHA and contracted additional consultants to complete the bank reconciliations for Fiscal Year (FY) 2017, FY 2018 and FY 2019. On July 1, 2019, the Housing Choice Voucher Program (HCV) (Section 8) was transferred to the Contra Costa County Housing Authority (CCCHA) significantly lowering the tenant and landlord financial transactions and decreasing the workload for the RHA (decrease of 2,004 Housing Choice Vouchers, and HUD funding for the program ~$26 million). As of December 2020, dedicated staffing for RHA finances increased, the City of Richmond Finance Department designated a Senior Accountant to review, monitor, and process transactions for RHA. Transactions include revenue and expenditure records to the General Ledger as well as bank reconciliations. In January 2022, the City designated an additional staff person, an Accountant, to support RHA in financial matters. As of April 18, 2022, the City contracted with an additional financial consultant who is a former Finance Director at another well managed Housing Authority to provide their expertise, support and training on housing authority finance related matters and reviews all financial data submitted to HUD financial systems such as audits. In March 2023, the Nevin Plaza affordable housing development was repositioned, decreasing again the financial transaction of an additional 142 tenants in the public housing program. The RHA is now following the City of Richmond’s formal monthly and year-end closing procedures to ensure that accounts are analyzed throughout the fiscal year and after the year-end closing to ensure that they include all current year activity, and the presentation is appropriate. All financial records have transitioned to the City’s MUNIS financial system which is systematic and accessible. RHA staff participate in the yearly City of Richmond trainings related to all financials systems used such as MUNIS, procurement, contracting, budget development, and year end closing. RHA and City of Richmond finance staff have participated in HUD trainings related to procurement, HUD Financial Data System, and Capital fund development and implementation.
• Anticipated Completion Date: August 21, 2020