ADAMS COUNTY HOUSING AUTHORITYLocal Government

#2025‐003 – Significant Deficiency – Eligibility Compliance ‐ Housing Assistance Payments Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD‐50058. The HAP amount must be reflected on the HAP contract and HAP register. Condition During the course of the audit, it was noted that the amount of the HAP payment was miscalculated for two individuals utilizing the program. Cause The cause is due to not receiving all pay stubs and bank statements from the individual to correctly calculate their HAP payment. Effect The effect is that the HAP payment was overstated. Questioned Costs None Perspective Information The finding is related only to the HCV program funds. Identification as a repeat finding There is a similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over the HAP contract and documentation prior or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing information or errors in the reporting. Additional training has been provided to the HCV Staff.

#2024‐001 – Significant Deficiency – Eligibility Compliance ‐ Housing Assistance Payments Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD‐50058. The HAP amount must be reflected on the HAP contract and HAP register. Condition During the course of the audit, it was noted that the amount of the HAP payment was miscalculated for an individual utilizing the program. Cause The cause is due to not receiving all pay stubs and bank statements from the individual to correctly calculate their HAP payment. Effect The effect is that the HAP payment was overstated. Questioned Costs None Perspective Information The finding is related only to the HCV program funds. Identification as a repeat finding There is a similar finding in the prior year. Recommendation We recommend that the Authority implement additional review procedures over the HAP contract and documentation prior or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing information or errors in the reporting. Additional training has been provided to the HCV Staff.

#2023-001 – Significant Deficiency – Housing Assistance Payments Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. The HAP amount must be reflected on the HAP contract and HAP register. Condition During the course of the audit, it was noted that the amount of the HAP payment was miscalculated for a number of families utilizing the program. Cause The cause is due to information from the families that was missing. Effect The potential effect is that the HAP payments could be overstated. Questioned Costs None Perspective Information The finding is related only to the HCV program funds. 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 the HAP contract and documentation prior or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing information or errors in the reporting. Additional training has been provided to the HCV Staff.

#2022-001 ? Significant Deficiency ? Depository Agreements Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities are required to enter into General Depository Agreements with their financial institutions using a form as required by HUD. Condition During the course of the audit, a depository agreement was not able to be produced between the depository and the Public Housing Authority. Cause The cause is the form not able to be located.Effect The potential effects of not having the agreement is a lack of safe guards for federal funds and providing third party rights to HUD. Questioned Costs None Perspective Information The finding is related only to the HCV program funds.Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend that the Authority to investigate the use of form and verify its existence or the need to file a new form. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement and due to the age of the bank account the form was not able to be located during the duration of the audit. HUD Form 51999 will be updated and submitted to HUD for approval.

#2022-002 ? Significant Deficiency ? Housing Assistance Payments Section 8 Housing Choice Vouchers, CFDA #14.871 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states Public Housing Authorities must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. The HAP amount must be reflected on the HAP contract and HAP register. Condition During the course of the audit, it was noted that the amount of the HAP payment was miscalculated for a number of families utilizing the program. Cause The cause is due to information from the families that was missing. Effect The potential effect is that the HAP payments could be overstated. Questioned Costs None Perspective Information The finding is related only to the HCV program funds. 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 the HAP contract and documentation prior or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing or errors in the reporting. Additional training has been provided to the HCV Staff.

#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.