Finding 577289 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-27
Audit: 1614

AI Summary

  • Core Issue: The Authority failed to conduct an environmental review before committing funds for HVAC installation.
  • Impacted Requirements: Compliance with federal regulations requiring environmental reviews prior to project funding.
  • Recommended Follow-Up: Staff should improve their understanding of Capital Fund Program compliance to prevent future issues.

Finding Text

Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872) Criteria: Federal Code of Regulations requires the Authority to have an environmental review performed for any project before the Authority may acquire, rehabilitate, convert, lease, repair, or construct property, or commit HUD funds at an assisted project. Condition: During the year, the Authority had an environmental review performed by having a determination letter issued by local county inspections and zoning stating that the plan scope of work would not have any significant environmental impact. This determination letter was dated June 15, 2023. The Authority had completed the installation of mini-split HVAC units totaling $134,626 before the determination letter was issued. The cost of the installation was paid for on May 11, 2023. Questioned Costs: None. Effect: The Authority did not properly comply with the program requirements performing an environmental review before funds were committed. Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to environmental reviews. Recommendation: The Authority’s staff should familiarize themselves with Capital Fund Program compliance requirements. Management Response: Management will ensure that future environmental reviews are performed for planned scope of work before program funds are obligated

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 846 2023-001
    Material Weakness
  • 847 2023-002
    Material Weakness
  • 577288 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.46M
14.872 Public Housing Capital Fund $266,773
14.850 Public and Indian Housing $172,866