Finding 555501 (2023-007)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-04-19

AI Summary

  • Core Issue: The Agency failed to pay 10 out of 29 subrecipient payments within the required 30 days.
  • Impacted Requirements: This non-compliance violates federal regulations for timely payments to subrecipients.
  • Recommended Follow-up: The Agency should enhance internal controls to ensure timely payments in line with program requirements.

Finding Text

Criteria or Specific Requirement: Special Tests The recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. This requirement also applies to each subrecipient that is a unit of general-purpose local government (24 CFR section 576.203). Condition: The Agency did not have adequate internal controls designed to ensure that subrecipient payments are paid in accordance with compliance requirements. Questioned Costs: None Context: Out of the 29 payments to subrecipients tested, 10 payments were not paid within 30 days. Cause: The Agency did not sufficiently monitor controls to ensure compliance with program requirements over payments to subrecipients. Effect: The Agency is not in compliance with federal regulations regarding subrecipient payments. Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Agency reviews the controls in place to ensure that subrecipient payments are paid timely and within program requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Emergency Solutions Grants Program – Assistance Listing No. 14.231 Recommendation: We recommend that the Agency reviews the controls in place to ensure that subrecipient payments are paid timely and within program requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To prevent a recurrence of the issue, we began implementing a corrective action plan. Specifically, we are enhancing our internal controls and began developing a comprehensive technical procedure manual that will serve as a detailed guide that provides a clear reference for finance and accounting staff to ensure consistency, compliance and efficiency in financial operations. Additionally, as SHRA is filling vacancies due to significant turnover across the entire Finance Department, specific training is provided to new employees in the following areas: • Building HOME • Capital Fund • CDBG • Continuum of Care • Developing a Cost Allocation Plan • Financial Management Part I and Part II (for CPD programs) • HCV Two Year Tool • IDIS • Mainstream Vouchers • Overview of Asset Management • PHA Financial Management Name(s) of the contact person(s) responsible for corrective action: Irene De Jong, DIRECTOR OF FINANCE Planned completion date for corrective action plan: December 31, 2025

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 555491 2023-002
    Material Weakness Repeat
  • 555492 2023-002
    Material Weakness Repeat
  • 555493 2023-002
    Material Weakness Repeat
  • 555494 2023-003
    Significant Deficiency Repeat
  • 555495 2023-003
    Significant Deficiency Repeat
  • 555496 2023-003
    Significant Deficiency Repeat
  • 555497 2023-004
    Significant Deficiency
  • 555498 2023-004
    Significant Deficiency
  • 555499 2023-005
    Significant Deficiency Repeat
  • 555500 2023-006
    Significant Deficiency
  • 555502 2023-007
    Material Weakness
  • 555503 2023-008
    Significant Deficiency Repeat
  • 555504 2023-008
    Significant Deficiency Repeat
  • 555505 2023-008
    Significant Deficiency Repeat
  • 555506 2023-008
    Significant Deficiency Repeat
  • 555507 2023-008
    Significant Deficiency Repeat
  • 555508 2023-008
    Significant Deficiency Repeat
  • 555509 2023-008
    Significant Deficiency Repeat
  • 555510 2023-008
    Significant Deficiency Repeat
  • 555511 2023-008
    Significant Deficiency Repeat
  • 555512 2023-009
    Significant Deficiency
  • 555513 2023-009
    Significant Deficiency
  • 555514 2023-010
    Significant Deficiency
  • 555515 2023-010
    Significant Deficiency
  • 555516 2023-010
    Significant Deficiency
  • 1131933 2023-002
    Material Weakness Repeat
  • 1131934 2023-002
    Material Weakness Repeat
  • 1131935 2023-002
    Material Weakness Repeat
  • 1131936 2023-003
    Significant Deficiency Repeat
  • 1131937 2023-003
    Significant Deficiency Repeat
  • 1131938 2023-003
    Significant Deficiency Repeat
  • 1131939 2023-004
    Significant Deficiency
  • 1131940 2023-004
    Significant Deficiency
  • 1131941 2023-005
    Significant Deficiency Repeat
  • 1131942 2023-006
    Significant Deficiency
  • 1131943 2023-007
    Material Weakness
  • 1131944 2023-007
    Material Weakness
  • 1131945 2023-008
    Significant Deficiency Repeat
  • 1131946 2023-008
    Significant Deficiency Repeat
  • 1131947 2023-008
    Significant Deficiency Repeat
  • 1131948 2023-008
    Significant Deficiency Repeat
  • 1131949 2023-008
    Significant Deficiency Repeat
  • 1131950 2023-008
    Significant Deficiency Repeat
  • 1131951 2023-008
    Significant Deficiency Repeat
  • 1131952 2023-008
    Significant Deficiency Repeat
  • 1131953 2023-008
    Significant Deficiency Repeat
  • 1131954 2023-009
    Significant Deficiency
  • 1131955 2023-009
    Significant Deficiency
  • 1131956 2023-010
    Significant Deficiency
  • 1131957 2023-010
    Significant Deficiency
  • 1131958 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $181.61M
14.239 Home Investment Partnerships Program (beginning Loan Balance) $127.26M
21.023 Covid-19 Emergency Rental Assistance $27.09M
14.218 Community Development Block Grants/entitlement Grants (beginning Loan Balance) $20.19M
14.239 Home Investment Partnerships Program (entitlements) $11.59M
14.850 Public and Indian Housing $10.07M
14.218 Community Development Block Grants/entitlement Grants (entitlements) $8.96M
14.218 Neighborhood Stabilization Program 1 (beginning Loan Balance) $8.10M
14.239 Home Investment Partnerships Program (program Income) $7.80M
14.872 Public Housing Capital Fund $7.68M
14.871 Emergency Housing Vouchers $6.91M
14.267 Continuum of Care Program $5.57M
14.218 Community Development Block Grants - Section 108 Loans (beginning Loan Balance) $5.50M
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $4.50M
14.231 Covid-19 Emergency Solutions Grant Program Cares Act $4.41M
14.218 Covid-19 Community Development Block Cares Act -Cv1 and Cv3 $4.27M
14.879 Mainstream Vouchers $2.82M
14.889 Choice Neighborhoods Implementation Grants $2.45M
14.241 Housing Opportunities for Persons with Aids (entitlements) $2.10M
14.218 Community Development Block Grants - Section 108 Loans $1.39M
14.231 Emergency Solutions Grant Program $911,431
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $353,153
14.218 Community Development Block Grants/entitlement Grants (program Income) $221,961
14.870 Resident Opportunity and Supportive Services - Service Coordinators $211,042
14.218 Neighborhood Stabilization Program 3 (program Income) $163,955
66.814 Epa Brownfield $155,454
14.896 Ph/hcv Family Self-Sufficiency Program $150,129
14.900 Lead Based Paint $133,507
14.896 Ph Family Self-Sufficiency Program $96,064
14.241 Covid-19 Housing Opportunities for Persons with Aids Cares Act $7,612
14.218 Neighborhood Stabilization Program 3 (entitlements) $1,086
14.241 Housing Opportunities for Persons with Aids (program Income) $167