Finding 970238 (2021-010)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2021
Accepted
2024-04-19
Audit: 303983
Auditor: Eide Bailly

AI Summary

  • Core Issue: The Authority failed to complete required environmental reviews for 3 out of 4 projects.
  • Impacted Requirements: Environmental reviews must be done every 5 years before any property-related activities can proceed.
  • Recommended Follow-Up: Implement stronger controls to ensure timely completion of environmental reviews for all projects.

Finding Text

U.S. Department of Housing and Urban Development ‐ CFDA #14.872 Capital Fund Program Applicable Federal Award Number and Year – Capital Fund Program ‐ 2021 Special Tests and Provisions – Environmental Reviews Significant Deficiency in Internal Control over Compliance Criteria – The Program requires an environmental review must be completed every 5 years for any project or activities before a PHA may acquire, rehabilitate, convert, lease, repair or construct property, or commit HUD or local funds at an assisted or to‐be‐assisted site. Condition – The Authority has not had an environmental review completed for 3 of the 4 projects. Questioned Costs – None Reported. Context/Sampling – N/A Effect – Failure to implement and maintain a proper control process resulted in environmental reviews not being completed on 3 of the 4 projects. Cause – The Authority has experienced significant staff turnover and the Authority’s controls are currently not adequately designed and operating. Repeat Finding from Prior Year – No. Recommendation – The Authority should implement controls to ensure that an environmental review is completed for all projects at least every 5 years. Views of Responsible Officials – Management agrees with the finding.

Categories

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

Other Findings in this Audit

  • 393781 2021-003
    Material Weakness Repeat
  • 393782 2021-003
    Material Weakness Repeat
  • 393783 2021-011
    Significant Deficiency
  • 393784 2021-012
    Significant Deficiency
  • 393785 2021-011
    Significant Deficiency
  • 393786 2021-012
    Significant Deficiency
  • 393787 2021-004
    Material Weakness Repeat
  • 393788 2021-005
    Material Weakness Repeat
  • 393789 2021-006
    Significant Deficiency Repeat
  • 393790 2021-004
    Material Weakness Repeat
  • 393791 2021-005
    Material Weakness Repeat
  • 393792 2021-006
    Significant Deficiency Repeat
  • 393793 2021-007
    Material Weakness Repeat
  • 393794 2021-008
    Significant Deficiency Repeat
  • 393795 2021-009
    Significant Deficiency Repeat
  • 393796 2021-010
    Significant Deficiency
  • 970223 2021-003
    Material Weakness Repeat
  • 970224 2021-003
    Material Weakness Repeat
  • 970225 2021-011
    Significant Deficiency
  • 970226 2021-012
    Significant Deficiency
  • 970227 2021-011
    Significant Deficiency
  • 970228 2021-012
    Significant Deficiency
  • 970229 2021-004
    Material Weakness Repeat
  • 970230 2021-005
    Material Weakness Repeat
  • 970231 2021-006
    Significant Deficiency Repeat
  • 970232 2021-004
    Material Weakness Repeat
  • 970233 2021-005
    Material Weakness Repeat
  • 970234 2021-006
    Significant Deficiency Repeat
  • 970235 2021-007
    Material Weakness Repeat
  • 970236 2021-008
    Significant Deficiency Repeat
  • 970237 2021-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.24M
14.182 Section 8 New Construction and Substantial Rehabilitation $553,367
14.871 Section 8 Housing Choice Vouchers $312,375
14.850 Public and Indian Housing $279,167
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $178,865
10.405 Farm Labor Housing Loans and Grants $127,040
10.427 Rural Rental Assistance Payments $60,863
14.896 Family Self-Sufficiency Program $36,603