Finding 517215 (2024-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-30
Audit: 335174
Organization: Springfield Housing Authority (MA)

AI Summary

  • Core Issue: The Authority failed to submit the Actual Modernization Cost Certificate and Performance & Evaluation Report within the required 90 days after the Expenditure End Dates for two grants.
  • Impacted Requirements: This non-compliance with HUD guidelines and Uniform Guidance could lead to delayed reviews, potential penalties, and affect future funding eligibility.
  • Recommended Follow-Up: Enhance internal controls by implementing deadline tracking, providing staff training, and establishing review processes to ensure timely report submissions.

Finding Text

Criteria - According to HUD guidelines and Uniform Guidance (2 CFR 200.344) related to the Authority’s Public Housing Capital Fund Program (CFP) (Assistance Listing No. 14.872), for modernization projects, the Authority shall submit the Actual Modernization Cost Certificate (AMCC) (Form HUD-53001) and the final Performance & Evaluation Report (P&E) (HUD-50075.1) within 90 days after the Expenditure End Date (EED). Condition - The Authority did not submit the AMCC or P&E reports within 90 days after the EED for both MA01E035501-19 grant (EED - April 8, 2023) and MA01P035501-18 grant (EED - May 28, 2024). Cause - The delay in submission was due to ineffective internal controls over the closeout process of individual CFP grant years. Effect - Late submission or non-submission of the required reports could result in delayed reviews by HUD, potential penalties, and could affect the Authority’s eligibility for future funding. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs - None identified. Repeat Finding - This is not a repeat finding. Recommendation - We recommend that the Authority enhance its internal controls to ensure timely submission of required reports. This could include implementing deadline tracking systems, providing additional training for staff responsible for report preparation, and establishing internal review processes to ensure compliance with reporting deadlines. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will implement controls to ensure all Capital Fund Program grants are accurately reported and finalized with HUD within the required due dates. (c) Planned implementation date of corrective action - Completed by March 31, 2025.

Corrective Action Plan

Name of Auditee: Springfield Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2024 CAP Prepared by: Denise Jordan, Executive Director Phone: (413) 785-4500 (A) Current Findings on the Schedule of Findings and Questioned Costs (4) Finding 2024-004 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will implement controls to ensure all Capital Fund Program grants are accurately reported and finalized with HUD within the required due dates. (c) Planned implementation date of corrective action - Completed by March 31, 2025.

Categories

HUD Housing Programs Eligibility Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 517211 2024-003
    Significant Deficiency Repeat
  • 517212 2024-002
    Significant Deficiency Repeat
  • 517213 2024-002
    Significant Deficiency Repeat
  • 517214 2024-003
    Significant Deficiency Repeat
  • 517216 2024-002
    Significant Deficiency Repeat
  • 517217 2024-002
    Significant Deficiency Repeat
  • 517218 2024-002
    Significant Deficiency Repeat
  • 1093653 2024-003
    Significant Deficiency Repeat
  • 1093654 2024-002
    Significant Deficiency Repeat
  • 1093655 2024-002
    Significant Deficiency Repeat
  • 1093656 2024-003
    Significant Deficiency Repeat
  • 1093657 2024-004
    Significant Deficiency
  • 1093658 2024-002
    Significant Deficiency Repeat
  • 1093659 2024-002
    Significant Deficiency Repeat
  • 1093660 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $12.95M
14.872 Public Housing Capital Fund $6.23M
14.195 Project-Based Rental Assistance (pbra) $735,922
14.879 Mainstream Vouchers $269,058
14.871 Section 8 Housing Choice Vouchers $101,646
14.870 Resident Opportunity and Supportive Services - Service Coordinators $89,169
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $40,515