WESTERLY HOUSING AUTHORITYLocal Government

2022-001 ? SPECIAL TESTS & PROVISIONS: RENT REASONABLENESS Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 ? Housing Voucher Cluster CRITERIA The PHA may not approve a lease until the PHA determines that the initial rent to an owner is a reasonable rent. (2) The PHA must redetermine the reasonable rent: (i) Before any increase in the rent to an owner; (ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary. (iii) If directed by HUD. The PHA may also redetermine the reasonable rent at any other time. At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA. (24 CFR 982.507) CONDITION We identified 5 instances in which the Authority was required to perform an assessment to determine if the rent requested by the landlord is reasonable for new admissions. In all five, the Authority did not perform this rent reasonableness assessment. CAUSE The Authority experienced turnover in the administrative department. EFFECT The Authority cannot ensure that HAP payments to landlords were reasonable. QUESTIONED COSTS Likely questioned costs - $4,724. CONTEXT We selected a sample of 20 from a population of 185. This was not a statistically valid sample. REPEAT FINDING This is not a repeat finding. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures and use a third party to conduct rent reasonableness. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

2021-002 ? Reporting Other Matter / Significant Deficiency U.S. Department of Housing and Urban Development ALN: 14.871 ? Housing Voucher Cluster / 14.850 ? Public and Indian Housing CRITERIA Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. CONDITION The audited FDS was required to be submitted to HUD and the Federal Audit Clearinghouse by June 30, 2022. This deadline was missed. CAUSE The Authority was unable to complete their 2020 audit timely, resulting in delays to the 2021 audit.EFFECT As a result of not submitting the audited FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the audited financial statements annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING This is a not a repeat finding. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the audited FDS. AUDITEE?S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

2019-001 ? Procurement, Suspension & Debarment Material Weakness / Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.850 ? Program Public and Indian Housing Program CONDITION As part of our audit, we examined a sample of vendors used for goods and services during fiscal year 2019. As a result of our procedures, we noted the Authority did not follow its policy for purchases exceeding $2,500. The payments to these vendors aggregated $90,232. CRITERIA For purchases in excess of $2,500 but not more than $50,000, no less than three offers shall be solicited to submit price quotations, which may be obtained orally, by telephone, or in writing, as allowed by state or local laws. Award shall be made to the offeror providing the lowest acceptable quotation, unless justified in writing based on price and other specific factors, such as for architect or engineering contracts. If non-price factors are used, they shall be disclosed to all those solicited. The names, addresses, and/or telephone numbers of the offeror and persons contracted, and the date and amount of each quotation shall be recorded and maintained as a public record in accordance with State and Local law. It will be the practice of the WHA to buy American made products whenever possible (Westerly Housing Authority Procurement Policy Section 3.1.3.1.iv). CAUSE The Authority?s internal control over procurement was not effective at identifying the need for competitive procurement in instances where frequently recurring transactions resulted in aggregate purchases in excess of competitive procurement thresholds. EFFECT The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority.QUESTIONED COSTS We have identified known questioned costs for purchases which were not competitively procured and directly charged to the Public and Indian Housing Program of $90,232 representing the aggregate expenditures to the vendors identified. CONTEXT We selected a sample of two vendors used by the Authority during the year representing aggregate expenditures of $90,232. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority make the following improvements to internal controls over procurement: ? Periodically review expenditures for frequently recurring transactions with vendors that could exceed the competitive procurement thresholds. ? Periodically compare the contract register against frequently used vendors. ? Solicit bids and competitively procure contracts for services and materials frequently used. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.