Finding 529340 (2023-103)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2025-03-21
Audit: 347356
Organization: Pinal County, Arizona (AZ)

AI Summary

  • Core Issue: The Housing Authority is not complying with the Housing Voucher program due to mismanagement of HAP funding.
  • Impacted Requirements: The Authority failed to adhere to 24 CFR §886.309, which mandates proper use of housing funds for current year HAP expenses.
  • Recommended Follow-Up: Hire qualified staff to accurately calculate and manage the restricted net position and HAP reserves.

Finding Text

Condition and Context - As of June 30, 2023, the restricted cash for the housing program does not exceed the ending housing assistance payment (HAP) restricted net position. Effect - The Housing Authority was not in compliance with the activities allowed by the Housing Voucher program. Cause - The Authority lacked the ability to correctly manage HAP funding by properly reporting the restricted net position. Criteria - 24 CFR §886.309, Housing assistance payment to owners, Public Housing Agency’s may use housing funds only for HAP participating owners. Furthermore, the current year HAP funding must be used for current year HAP expenses. The PHA’s restricted net position provides the balance in future years of the prior unspent funding. Repeat Finding - This finding is similar to prior year finding 2022-105. Recommendation - The other auditors recommended management hire and retain competent individuals to calculate the restricted net position, HAP reserves and properly manage spending of funds. Note - Finding noted by other auditors as finding 2023-002.

Corrective Action Plan

Note: Finding noted by other auditors as finding 2023-002. Condition and Context – As of June 30, 2023, the restricted cash for the housing program does not exceed the ending housing assistance payment (HAP) restricted net position. Recommendation – The other auditors recommended management hire and retain competent individuals to calculate the restricted net position, HAP reserves and properly manage spending of funds. Contact Name: Rolanda Cephas, Housing Director Corrective Action Planned: The Housing Authority has recruited a Finance Manager who has demonstrated that she has strong financial skills and has sufficient knowledge and understanding of the factors that determine the Housing Authority's restricted net positions. Anticipated Completion Date: June 30, 2025

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 529336 2023-101
    Significant Deficiency Repeat
  • 529337 2023-101
    Significant Deficiency Repeat
  • 529338 2023-101
    Significant Deficiency Repeat
  • 529339 2023-102
    Material Weakness Repeat
  • 529341 2023-101
    Significant Deficiency Repeat
  • 529342 2023-101
    Significant Deficiency Repeat
  • 529343 2023-101
    Significant Deficiency Repeat
  • 529344 2023-101
    Significant Deficiency Repeat
  • 529345 2023-101
    Significant Deficiency Repeat
  • 529346 2023-101
    Significant Deficiency Repeat
  • 529347 2023-101
    Significant Deficiency Repeat
  • 1105778 2023-101
    Significant Deficiency Repeat
  • 1105779 2023-101
    Significant Deficiency Repeat
  • 1105780 2023-101
    Significant Deficiency Repeat
  • 1105781 2023-102
    Material Weakness Repeat
  • 1105782 2023-103
    Material Weakness Repeat
  • 1105783 2023-101
    Significant Deficiency Repeat
  • 1105784 2023-101
    Significant Deficiency Repeat
  • 1105785 2023-101
    Significant Deficiency Repeat
  • 1105786 2023-101
    Significant Deficiency Repeat
  • 1105787 2023-101
    Significant Deficiency Repeat
  • 1105788 2023-101
    Significant Deficiency Repeat
  • 1105789 2023-101
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $28.56M
21.027 Coronavirus State and Local Fiscal Recovery Funds $12.63M
20.933 National Infrastructure Investments $12.30M
14.871 Section 8 Housing Choice Vouchers $7.20M
10.923 Emergency Watershed Protection Program $6.75M
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $5.50M
97.067 Homeland Security Grant Program $2.90M
14.218 Community Development Block Grants/entitlement Grants $2.73M
17.258 Wioa Adult Program $1.50M
15.916 Outdoor Recreation Acquisition, Development and Planning $1.44M
14.239 Home Investment Partnerships Program $1.38M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.36M
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $938,725
17.259 Wioa Youth Activities $896,219
14.850 Public Housing Operating Fund $692,841
17.278 Wioa Dislocated Worker Formula Grants $618,707
14.872 Public Housing Capital Fund $562,477
93.069 Public Health Emergency Preparedness $515,818
93.217 Family Planning Services $496,915
16.575 Crime Victim Assistance $470,607
93.563 Child Support Services $459,126
20.616 National Priority Safety Programs $352,024
93.268 Immunization Cooperative Agreements $300,490
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $299,245
93.354 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $273,929
16.827 Justice Reinvestment Initiative $268,372
97.042 Emergency Management Performance Grants $254,085
93.136 Injury Prevention and Control Research and State and Community Based Programs $253,141
16.738 Edward Byrne Memorial Justice Assistance Grant Program $220,557
12.610 Community Economic Adjustment Assistance for Compatible Use and Joint Land Use Studies $204,592
93.658 Foster Care Title IV-E $200,407
66.605 Performance Partnership Grants $192,248
16.554 National Criminal History Improvement Program (nchip) $175,855
10.555 National School Lunch Program $175,050
20.600 State and Community Highway Safety $167,859
95.001 High Intensity Drug Trafficking Areas Program $165,038
90.404 Hava Election Security Grants $152,871
93.994 Maternal and Child Health Services Block Grant to the States $134,633
84.010 Title I Grants to Local Educational Agencies $118,973
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $117,037
10.665 Schools and Roads - Grants to States $95,384
84.425 Education Stabilization Fund $93,359
14.870 Resident Opportunity and Supportive Services - Service Coordinators $93,081
16.576 Crime Victim Compensation $88,000
14.231 Emergency Solutions Grant Program $87,659
93.116 Injury Prevention and Control Research and State and Community Based Programs $83,723
16.034 Coronavirus Emergency Supplemental Funding Program $74,893
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $71,974
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $70,861
10.553 School Breakfast Program $59,463
84.027 Special Education Grants to States $53,661
16.758 Improving the Investigation and Prosecution of Child Abuse and the Regional and Local Children's Advocacy Centers $40,424
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $40,264
16.585 Treatment Court Discretionary Grant Program $39,291
84.377 School Improvement Grants $35,444
93.597 Grants to States for Access and Visitation Programs $26,526
84.358 Rural Education $21,111
16.588 Violence Against Women Formula Grants $19,585
93.940 Hiv Prevention Activities Health Department Based $17,072
10.704 Law Enforcement Agreements $14,515
14.267 Continuum of Care Program $13,700
16.U03 Usms Sex Offender (short-Term Joint Operation) $13,476
16.U01 Dea Task Fore $11,788
16.U02 FBI Phoenix Transnational Organized Crime Task Force $11,737
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $10,684
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation�s Health $10,302
16.834 Domestic Trafficking Victim Program $5,810
16.582 Crime Victim Assistance/discretionary Grants $4,767
97.U01 Cyber Fraud Task Force $799
84.173 Special Education Preschool Grants $571