Housing Authority of the City of College ParkLocal Government

Criteria Per 24 CFR 200.05, Housing Authorities are to minimize the time federal funds are drawn down to expenditure. Additionally 24 CFR 905.310 states that PHA shall initiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule. Condition Management did not follow the 3 day rule. Context During the fiscal year, management drew down CFP funds to provide funding to improve Public Housing. They had an invoice from a supplier, but discovered an issue with the invoice after the voucher had been submitted and the funds had been deposited into the Authority's bank account. Due to the invoice issue, management did not pay the invoice within 3 days. Cause Management did not review and verify the invoice before requesting a draw from the Capital Fund Program. Effect The Authority is not in compliance with Cash Management rules relating to the Capital Fund Program. Recommendations The Authority creates internal controls to ensure invoices are correct before requesting funds from the Capital Fund Program. Questioned Costs None Management Views Management Agrees

2025-002 Utilities Allowance Calcuation Criteria "In accordance with the 2014 Appropriations Act Section 242, the utility allowance for a family shall be the lower of: (1) The utility allowance amount for the family unit size; or (2) the utility allowance amount for the unit size of the unit rented by the family. However, upon the request of a family that includes a person with disabilities, the PHA must approve a utility allowance higher than the applicable amount if such a higher utility allowance is needed as a reasonable accommodation in accordance with HUD's regulations in 24 CFR part 8 to make the program accessible to and usable by the family member with a disability. This provision applies only to vouchers issued after the effective date of this notice (June 12, 2014) and to current program participants. For current program participants, a PHA must implement the new allowance at the family's next annual reexamination, provided that the PHA is able to provide a family with at least 60 days' notice prior to the reexamination. " Condition During the audit, we noted multiple HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. Context Due to a software issue 14 of the 40 vouchers we tested did not have the correct Utility Allowance. Cause Procedures to ensure that the appropriate utility allowance was note adhered to on a consistent basis. Effect Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Recommendations Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Questioned Costs None Management Views Management Agrees

2020-002 Resident participation funds were not provided to duly elected resident council (CFDA14.850) Criteria: Per CFR Section 964.150, the Authority is required to provide $15 per unit per year to its duly elected resident council to fund tenant participation activities. Condition: The Authority did not provide the tenant participation funds to its resident councils. Questioned Costs: None. Effect: The Authority?s resident councils were not provided available funding to encourage tenant participation. Cause: The Authority did not ensure that proper transfers were made to its duly elected resident councils. Recommendation: The Authority should ensure that each year $15 per unit should be provided to its duly resident councils under written agreement. The Authority should also ensure that the resident councils establish its own budget and verify expenditures by the resident council are made in accordance with its approved budget. Management Response: We will implement controls to ensure that funding is made available to each resident council that is established.

2020-003 Operating Budget Not approved by Board of Commissioners Before Beginning of Fiscal Year (Public Housing Program CFDA 14.850) Criteria: Under Section 11 of the Annual Contributions Contract (ACC) and 24 CFR 990.315, the Authority is required to prepare and approve its Public Housing Operating Budget before any operating expenses are incurred in the start of the Authority?s fiscal year. Condition: The Authority did not have its Board of Commisioners approve its fiscal year 2020 operating budget until July 23, 2019. Questioned Costs: None. Effect: The Authority did not comply with 24 CFR 990.315. Cause: The Authority did not present its operating budget to its Board of Commissioners for approval until July 23, 2019. Recommendation: The Authority should establish a process whereby the operating budget is prepared and presented to the Authority?s Board of Commissioners before the beginning of its fiscal year. Management Response: We will implement controls to ensure that operating budgets are prepared and presented to the Authority?s Board of Commissioners for approval before the beginning of the Authority?s fiscal year

2020-004 Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872) Criteria: Federal Code of Regulations, CFR ? 905.314 (l) requires the Authority to first drawdown Budget Line item 1406 Operations before amounts are obligated. Condition: During the year, the Authority had one Operations draw from CFP 2019 in the amount of $122,196. The Operations draw was made after amounts were reported as obligated in ELOCCS. Questioned Costs: None. Effect: The Authority did not properly follow the requirements of CFR ? 905.314 (l). Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to Operations Budget Line Item 1406 draws. Recommendation: The Authority?s staff should familiarize themselves with Capital Fund Program reporting requirements. Management Response: Management will ensure that future 1406 Operations draws will be made before amounts are reported as obligated.

2020-005 Annual tenant reexamination of family income and composition to determine eligibility not performed (CFDA14.850 and CFDA 14.871) Criteria: Per CFR 24 Section 960.257, the Authority is required to conduct reexamination of family income and composition at least annually and must make appropriate adjustments in the rent after consultation with the family and upon verification of the information. Per HUD Notice 2020-05, the Authority was granted a waiver to conduct annual reexaminations of family income and composition until December 31, 2020. Condition: The Authority did not conduct annual recertifications for 4 out of the 25 Public Housing files and 1 out of 25 Housing Choice Voucher files selected for review. These annual recertifications were not completed as of May 31, 2021. Questioned Costs: None. Effect: The Authority is not in compliance with CFR 24 Section 960.27 and could have improperly charged tenants for incorrect amount of rent during the audit period. Cause: The Authority did not ensure that annual recertifications were performed for all tenants by the end of the waiver period of December 31, 2020. Recommendation: The Authority should ensure that all tenants? family income and household composition reexamination is performed annually. Management Response: We will implement controls to ensure that reexamination of family income and composition occurs at least annually and must make appropriate adjustments in the rent of each tenant in the Public Housing and Housing Choice Voucher programs.

2019-002 Resident participation funds were not provided to duly elected resident council (CFDA14.850) Criteria: Per CFR Section 964.150, the Authority is required to provide $15 per unit per year to its duly elected resident council to fund tenant participation activities. Condition: The Authority did not provide the tenant participation funds to its resident councils. Questioned Costs: None. Effect: The Authority?s resident councils were not provided available funding to encourage tenant participation. Cause: The Authority did not ensure that proper transfers were made to its duly elected resident councils. Recommendation: The Authority should ensure that each year $15 per unit should be provided to its duly resident councils under written agreement. The Authority should also ensure that the resident councils establish its own budget and verify expenditures by the resident council are made in accordance with its approved budget. Management Response: We will implement controls to ensure that funding is made available to each resident council that is established.

2019-003 Operating Budget Not approved by Board of Commissioners Before Beginning of Fiscal Year (Public Housing Program CFDA 14.850) Criteria: Under Section 11 of the Annual Contributions Contract (ACC) and 24 CFR 990.315, the Authority is required to prepare and approve its Public Housing Operating Budget before any operating expenses are incurred in the start of the Authority?s fiscal year. Condition: The Authority did not have its Board of Commisioners approved its fiscal year 2019 operating budget until July 24, 2018. Questioned Costs: None. Effect: The Authority did not comply with 24 CFR 990.315. Cause: The Authority did not present its operating budget to its Board of Commissioners for approval until July 24, 2018. Recommendation: The Authority should establish a process whereby the operating budget is prepared and presented to the Authority?s Board of Commissioners before the beginning of its fiscal year. Management Response: We will implement controls to ensure that operating budgets are prepared and presented to the Authority?s Board of Commissioners for approval before the beginning of the Authority?s fiscal year.

2019-004 Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872) Criteria: Federal Code of Regulations, CFR ? 905.314 (l) requires the Authority to first drawdown Budget Line item 1406 Operations before amounts are obligated. Condition: During the year, the Authority had one Operations draw from CFP 2018 in the amount of $127,660. The Operations draw was made after amounts were reported as obligated in ELOCCS. Questioned Costs: None. Effect: The Authority did not properly follow the requirements of CFR ? 905.314 (l). Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to Operations Budget Line Item 1406 draws. Recommendation: The Authority?s staff should familiarize themselves with Capital Fund Program reporting requirements. Management Response: Management will ensure that future 1406 Operations draws will be made before amounts are reported as obligated.

GSA_MIGRATION

GSA_MIGRATION