Finding 588703 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-04
Audit: 16514
Organization: Adams County Housing Authority (PA)

AI Summary

  • Core Issue: Adams County Housing Authority is not following its approved cost allocation plan for certain expenses related to the HCV program.
  • Impacted Requirements: Specific expenses like postage, health benefits, and telephone costs were not allocated correctly, leading to an understatement of HCV program expenses.
  • Recommended Follow-Up: Implement additional review procedures for invoices to ensure compliance with the cost allocation plan.

Finding Text

#2022-003 ? Significant Deficiency ? Allocation to HCV program Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria Adams County Housing Authority?s cost allocation plan approved by HUD specifically states that for certain expenses an allocation of 25% to the HCV is appropriate. Condition During the course of the audit, it was noted that Adams County Housing Authority is not following their cost allocation plan in regards to certain postage, health benefit, and telephone expenses. Cause The cause is due to not referencing the cost allocation plan when approving expenses. Effect The potential effects is that the HCV program expenses were understated. Questioned Costs None Perspective Information In all exceptions noted, Adams County Housing Authority undercharged the HCV program. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over invoices to verify the allocation according to the cost allocation plan. View of responsible officials and planned corrective action We agree that there were some expenses that did not follow the cost allocation and that in all cases noted, we undercharged the HCV program. We will implement further review processes that reference expenses directly back to the cost allocation plan.

Categories

HUD Housing Programs Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 12259 2022-001
    Significant Deficiency
  • 12260 2022-002
    Significant Deficiency
  • 12261 2022-003
    Significant Deficiency
  • 588701 2022-001
    Significant Deficiency
  • 588702 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.32M
10.427 Rural Rental Assistance Payments $105,732
14.879 Mainstream Vouchers $90,008
14.896 Family Self-Sufficiency Program $74,546