FAC Explorer

Finding 559983 (2023-005)

Significant Deficiency
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's electronic workbook for calculating rent and utility shares contains multiple input errors and lacks supervisory review.
  • Impacted Requirements: Non-compliance with 24 CFR Section 578.77, which mandates accurate calculations based on household income and family size.
  • Recommended Follow-Up: Implement and document internal control procedures for workbook preparation, including verification and approval processes to ensure ongoing compliance.

Finding Text

2023-005 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 uses an electronic workbook to assist in the calculation of verified income, rent share of the participant, utility charges and allowances. Our testing of the workbooks found that several input errors were present but not detected and corrected in a reasonable time. There is no evidence of supervisory review in the document. 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: Our review of the workbooks found: 10 of the 20 selected did not contain a date prepared or effective date. A 2-bedroom unit was entered as a 3-bedroom unit, the lease exceeded the Fair Market Rent An income calculation was not annualized properly, the income from all sources was understated by 25%. Cause: The Organization uses an excel workbook to track and calculate the information needed to determine rent and utility shares for the participants in the COC programs. The forms are not being completed properly. Information is omitted or entered in the incorrect section of the workbook. There is no evidence in the workbook that it is being verified by someone other than the preparer. Effect: The Organization is not in compliance with the requirements of the Continuum of Care program. Recommendation: We recommend that written procedures addressing internal controls with respect to preparation of the workbooks be reviewed and should include that verification and approval procedures are evident 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 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
  • 559967 2023-004
    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
  • 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