FAC Explorer

Finding 559967 (2023-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-05-08
Audit: 355894
Organization: Mental Health Association in Orange County, Inc. (NY)
Auditor: Nugent & Haeussler PC

AI Summary

  • Core Issue: The Organization failed to update rent calculation worksheets to reflect current utility rates, leading to non-compliance with HUD requirements.
  • Impacted Requirements: This affects the calculation of tenant rent portions under the Continuum of Care program, violating 24 CFR Section 578.77.
  • Recommended Follow-Up: Implement written procedures for tracking program changes and regularly update worksheets to ensure ongoing compliance.

Finding Text

2023-004 Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions U.S. Department of Housing and Urban Development Direct Program Program Name: Continuum of Care AL#: 14.267 Condition: The Organization used rent calculation worksheets which had not been updated for the published utility rates for the area, or calculated based on HUD’s Utility Allowance Handbook. Criteria: Per 24 CFR Section 578.77, the share of rent allowed to be charged to the tenant takes into consideration household income, size of the family and a credit for utilities included in the lease. Context: 20 cases from a total population of 39 were selected for testing. The utility rates were out of date on 2 of the worksheets. On 5 worksheets, the utility calculation was noted but the supporting worksheet was not included in the workbook presented for audit. The remaining files had updated utility information. Cause: The Organization did not update their records and calculation worksheets for the change in the published utility rates or self- calculate the rates based on the Utility Allowance Handbook at the beginning of the year. Effect: The Organization is not in compliance with the requirements of the Continuum of Care program with respect to Special Test Requirements for Reasonable Rental Rates. The calculation of the correct tenant’s portion impacts the balance paid by the Organization and subsequently charged to the HUD grants. Identification of a This is a repeat finding from the immediate previous audit, 2022-002. Repeat Finding Recommendation: We recommend that written procedures addressing internal controls with respect to tracking changes in program requirements be implemented and that procedures to update any worksheets for the effect of those requirements be performed and verified to ensure that the Organization is in compliance at all times. View of Responsible Officials: Mental Health Association in Orange County Inc.’s (MHA) management concurs with this finding. The Organization is in the process of implementing procedures to ensure that compliance is maintained in the future. Please refer to the corrective action plan on pages 15 - 16.

Categories

Special Tests & Provisions HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 559954 2023-003
    Significant Deficiency Repeat
  • 559955 2023-004
    Significant Deficiency Repeat
  • 559956 2023-005
    Significant Deficiency
  • 559957 2023-003
    Significant Deficiency Repeat
  • 559958 2023-004
    Significant Deficiency Repeat
  • 559959 2023-005
    Significant Deficiency
  • 559960 2023-003
    Significant Deficiency Repeat
  • 559961 2023-004
    Significant Deficiency Repeat
  • 559962 2023-005
    Significant Deficiency
  • 559963 2023-003
    Significant Deficiency Repeat
  • 559964 2023-004
    Significant Deficiency Repeat
  • 559965 2023-005
    Significant Deficiency
  • 559966 2023-003
    Significant Deficiency Repeat
  • 559968 2023-005
    Significant Deficiency
  • 559969 2023-003
    Significant Deficiency Repeat
  • 559970 2023-004
    Significant Deficiency Repeat
  • 559971 2023-005
    Significant Deficiency
  • 559972 2023-003
    Significant Deficiency Repeat
  • 559973 2023-004
    Significant Deficiency Repeat
  • 559974 2023-005
    Significant Deficiency
  • 559975 2023-003
    Significant Deficiency Repeat
  • 559976 2023-004
    Significant Deficiency Repeat
  • 559977 2023-005
    Significant Deficiency
  • 559978 2023-003
    Significant Deficiency Repeat
  • 559979 2023-004
    Significant Deficiency Repeat
  • 559980 2023-005
    Significant Deficiency
  • 559981 2023-003
    Significant Deficiency Repeat
  • 559982 2023-004
    Significant Deficiency Repeat
  • 559983 2023-005
    Significant Deficiency
  • 1136396 2023-003
    Significant Deficiency Repeat
  • 1136397 2023-004
    Significant Deficiency Repeat
  • 1136398 2023-005
    Significant Deficiency
  • 1136399 2023-003
    Significant Deficiency Repeat
  • 1136400 2023-004
    Significant Deficiency Repeat
  • 1136401 2023-005
    Significant Deficiency
  • 1136402 2023-003
    Significant Deficiency Repeat
  • 1136403 2023-004
    Significant Deficiency Repeat
  • 1136404 2023-005
    Significant Deficiency
  • 1136405 2023-003
    Significant Deficiency Repeat
  • 1136406 2023-004
    Significant Deficiency Repeat
  • 1136407 2023-005
    Significant Deficiency
  • 1136408 2023-003
    Significant Deficiency Repeat
  • 1136409 2023-004
    Significant Deficiency Repeat
  • 1136410 2023-005
    Significant Deficiency
  • 1136411 2023-003
    Significant Deficiency Repeat
  • 1136412 2023-004
    Significant Deficiency Repeat
  • 1136413 2023-005
    Significant Deficiency
  • 1136414 2023-003
    Significant Deficiency Repeat
  • 1136415 2023-004
    Significant Deficiency Repeat
  • 1136416 2023-005
    Significant Deficiency
  • 1136417 2023-003
    Significant Deficiency Repeat
  • 1136418 2023-004
    Significant Deficiency Repeat
  • 1136419 2023-005
    Significant Deficiency
  • 1136420 2023-003
    Significant Deficiency Repeat
  • 1136421 2023-004
    Significant Deficiency Repeat
  • 1136422 2023-005
    Significant Deficiency
  • 1136423 2023-003
    Significant Deficiency Repeat
  • 1136424 2023-004
    Significant Deficiency Repeat
  • 1136425 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $124,281
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $60,214
93.558 Temporary Assistance for Needy Families $40,118
16.575 Crime Victim Assistance $27,081
93.136 Injury Prevention and Control Research and State and Community Based Programs $26,763
14.267 Continuum of Care Program $12,653
16.017 Sexual Assault Services Formula Program $9,442
21.027 Coronavirus State and Local Fiscal Recovery Funds $711
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $422