Pasco County Housing AuthorityLocal Government

2024-001 - Annual Physical Inspections Not Consistently Performed (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program - Assistance Listing No. 10.427: Grant Period: Fiscal Year-End September 30, 2024. Criteria: The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, Chapter 5 of the Handbook and CFR 3560.103(b) specify the performance of annual unit inspections. Condition: During audit fieldwork, auditors requested annual inspection reports for ten sampled units. Housing Authority management was unable to provide applicable annual inspections for seven of the ten units requested. Cause: Failure to perform inspections at the three applicable sites. Failure to execute controls over property inspection requirements of the Program. Questioned Costs: None. Effect: Non-compliance with federal requirements of the Program. Recommendation: We recommend that the Housing Authority perform annual inspections on each of its Program properties. Management’s Response: The Housing Authority will perform annual inspections on each of its Program properties. The Housing Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of September 30, 2025.

Finding 2024-002 - Section 8 HQS Inspection Deficiencies (Significant Deficiency) Section 8 Housing Choice Voucher Program - Assistance Listing No. 14.871: Grant Period: Fiscal Year-End September 30, 2024. Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for annual inspections to determine if the units leased to families meet the Housing Quality Standards. Specifically, HUD regulations CFR Parts 982.158 and 982.404 require inspections of units under HAP contract that fail to meet HQS. The PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition: HQS inspections were tested for compliance in the current year. Of the 13 failed HQS inspections selected for review, 2 units were not re-inspected with the 30-day requirement and HAP payments were not properly abated. Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: None. Recommendation: We recommend that the Housing Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required timeframe to meet the HUD compliance requirements. Management's Response: The Housing Authority is continuing to work on the procedures for failed inspections to ensure that the re-inspections are performed within the 30-day requirement. The Housing Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements. Jeff Sklet, Executive Director, has assumed the responsibility of ensuring that the inspections will be performed within the timeframe to meet the HUD compliance requirements and expects the deficiencies which led to this finding to be resolved by September 30, 2025.

Finding 2023-001 – Annual Physical Inspections Not Consistently Performed (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program – Assistance Listing No. 10.427; Grant Period: Fiscal Year-End September 30, 2023 Criteria The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, Chapter 5 of the Handbook and CFR 3560.103(b) specify the performance of annual unit inspections. Condition and Perspective During audit fieldwork, auditors requested annual inspection reports for ten sampled units. Authority management was unable to provide applicable annual inspections for three of the ten units requested. The units not inspected appeared to be isolated to one of the three Rural Rental Assistance properties. Questioned Costs - None Cause Failure to perform inspections at one of three applicable sites. Failure to execute controls over property inspection requirements of the Program. Effect Non-compliance with federal requirements of the Program. Recommendation We recommend that the Authority perform annual inspections on each of its Program properties. Management’s Response The Authority will perform annual inspections on each of its Program properties. The Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of July 31, 2024.

Finding 2023-002 – Annual Property Budgets Not Submitted / Not Submitted Timely (Material Weakness, Material Non-Compliance) Rural Rental Assistance Payments Program – Assistance Listing No. 10.427; Grant Period: Fiscal Year-End September 30, 2023 Criteria The Multi-Family Housing Programs and Asset Management Handbook (HB-2-3560) and the Code of Federal Regulations (CFR) Title 7, Subtitle B, Chapter XXXV, Part 3560 applicable to the Department of Agriculture, Rural Rental Housing provides guidance and criteria under which the Rural Rental Housing Payments Program is to be administered and operated. Specifically, CFR 3560.303(a) specifies that an annual housing project budget must be submitted to the Rural Housing Service of the U.S. Department of Agriculture prior to the start of the applicable housing project’s fiscal year. Condition and Perspective The Authority did not submit fiscal year 2024 budgets appliable to its three Rural Rental Assistance properties. Questioned Costs - None Cause Failure to complete and submit property budgets. Failure to execute controls over budgeting requirements of the Program. Effect Non-compliance with federal requirements of the Program. Recommendation We recommend that the Authority complete and submit budgets applicable to each of its Program properties prior to the beginnings of subsequent fiscal years. Management’s Response The Authority will complete and submit budgets applicable to each of its Program properties prior to the beginnings of subsequent fiscal years. The Authority’s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of July 1, 2024.

Finding 2022-001 ? Non-compliance with Cash Management Requirements of the Capital Fund Program (Other Non-Compliance) Capital Fund Program ? Assistance Listing No. 14.872, Grant Period: Fiscal Year-End September 30, 2022 Criteria Uniform Guidance Cash Management requirements of the Capital Fund Program require the Authority to minimize time elapsing between the transfer of funds from the U.S. Treasury and disbursement to the applicable contractors or vendors (2 CFR Section 200.305.b). Condition As of the beginning of fiscal year 2022 the Authority held $122,491 of unexpended grant draws, which were allocated within the grant budgets for capital improvement expenditures, from the 2019 and 2020 Capital Fund Program grants. Instead of funding capital improvement expenditures from these unexpended funds during the fiscal year 2022, the Authority continued to draw funds from Capital Fund Program grants to fund fiscal year 2022 capital expenditures. Also, during fiscal year 2022 the Authority drew down an additional $141,810 of grant draws, which were allocated within the grant budgets for capital improvement expenditures, from the 2019; 2020 and 2021 Capital Fund Program grants in excess of applicable fiscal year 2022 grant expenditures, which resulted in cumulative unexpended grant draws (unearned grant revenue) as of September 30, 2022 of $264,301. Questioned Costs - None Cause The failure to expend the $122,491 of unexpended grant draws which were held as of the beginning of the fiscal year appears to be a result of A) the Authority not posting applicable prior year audit adjustments into its general ledger accounting software, and B) failure to attain an understanding of certain account balances as of the beginning of the fiscal year. The excess, unexpended draw-downs which occurred during fiscal year 2022 of $141,810 appear to be a result of a failure to adequately track grant expenditures to applicable grants, as these expenditures of $141,810 were funded during fiscal year 2022 with grant draws from a HOME Investment Partnerships Program grant. Effect Non-compliance with Uniform Guidance Cash Management requirements of the Capital Fund Program. Recommendation We recommend that the Authority expend the unexpended Capital Fund Program grant proceeds held, prior to drawing down additional funding from Capital Fund Program grant allocations which are budgeted for capital improvements. Management?s Response The Authority will expend the unexpended Capital Fund Program grant proceeds held, prior to drawing down additional funding from Capital Fund Program grant allocations which are budgeted for capital improvements. The Authority?s Executive Director, Jeff Sklet has assumed the responsibility of executing this corrective action as of March 31, 2024.

Finding 2019-001 - HUD Financial Management Review Section 8 Housing Choice Voucher Program ? CFDA No. 14.871; Grant period ? year ended September 30, 2019 Criteria The Housing Choice Voucher Program Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under. Condition and Cause In January of 2020, HUD conducted a Financial Management Review of the Housing Authority?s Section 8 Housing Choice Vouchers Program. The Review covered the period of October 2014 through June of 2019. The results of the Review included the following Findings: Finding #1 ? The Restricted Net Position (RNP) and Unrestricted Net Position (UNP) account balances were incorrectly calculated and reported in the Voucher Management System (VMS). Finding #2 ? PCHA had not returned all the interest earned on Housing Assistance Payment funds (of $2,285) to the Treasury. Finding #3 ? PCHA is incorrectly reporting and tracking the Family Self Sufficiency (FSS) Program Coordinator grant funding and expenses. Finding #4 ? PCHA does not have a properly executed General Depository Agreement. The General Depository Agreement did not have the required account numbers listed under Section 2 (of the Agreement). Effect Inaccurate VMS reporting (Finding #1), violation of Section 8 Housing Choice Voucher Program requirements (Findings #2 and #4), and failure to report FSS Program activity in accordance with HUD financial reporting requirements (Finding #3). Questioned Costs ? N/A Recommendation We recommend that the Authority execute the corrective actions that HUD?s QAD outlined in the Review Report dated January 16, 2020. Reply The Authority submitted corrective actions to HUD dated February 24, 2020, which included implementing HUD?s recommended corrective actions.

Finding 2019-002 ? Eligibility Determinations and Annual Reexaminations Section 8 Housing Choice Voucher Program ? CFDA No. 14.871; Grant period ? year ended September 30, 2019 Criteria The Housing Choice Voucher Program Guidebook and other HUD PIH Notices and Handbooks provide requirements and guidance for which the Section 8 Housing Choice Voucher Program is to be administered and operated under. Specifically, the Authority must conduct annual reexaminations for all persons and families assisted under the Program. Condition and Cause During fiscal year 2019, forty Section 8 Housing Choice Voucher Program tenant files were requested for audit for compliance with Program eligibility and reexamination requirements. The Authority was unable to provide one of the forty requested files for which an annual reexamination should have been performed. Effect Noncompliance with federal eligibility and reexamination requirements. Questioned Costs ? N/A Recommendation We recommend that the Authority perform annual reexaminations of all families assisted under the Program, in accordance with federal requirements. Reply The Authority will perform annual reexaminations of all families assisted under the Program. The Authority?s Executive Director has assumed the responsibility of executing strengthened controls over the annual reexamination and tenant file maintenance processes and anticipates the deficiencies which led to this Finding to be resolved by January 29, 2021.

Finding 2019-003 ? Housing Quality Standards Inspections Section 8 Housing Choice Voucher Program ? CFDA No. 14.871; Grant period ? year ended September 30, 2019 Criteria The Code of Federal Regulations and other HUD PIH Notices provide requirements and guidance for Housing Quality Standards (HQS) Inspections with respect to the Section 8 Housing Choice Voucher Program. Specifically, the Authority must inspect an assisted unit at least annually to determine if the unit meets HQS and must conduct quality control re-inspections. For units under Housing Assistance Payment (HAP) contracts that fail to meet HQS, the Authority must require the owner to correct any non-life threatening HQS deficiencies within thirty days or within a specified extension period granted by the Authority. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAP?s beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition, Cause and Questioned Costs During fiscal year 2019, HQS inspections were reviewed for forty Section 8 Housing Choice Voucher Program-assisted units. It was noted that one of the units failed its initial inspection on December 11, 2018. According to the Authority?s records, it attempted re-inspection on January 10, 2019 but did not re-inspect the unit at that time because nobody was at the unit to allow entry. The unit was subsequently inspected on December 3, 2019, at which time it passed. Monthly HAP?s of $800 were not abated for the months of February 2019 through November 2019, which totaled $8,000. Effect Noncompliance with federal HQS requirements. Recommendation We recommend that the Authority perform re-inspections of assisted-units within thirty days to verify HQS deficiencies are corrected or abate HAP?s. Reply The Authority will perform re-inspections of assisted-units within thirty days to verify HQS deficiencies are corrected or will abate HAP?s. The Authority?s Executive Director has assumed the responsibility of executing strengthened controls over HQS inspections and anticipates the deficiencies which led to this Finding to be resolved by January 29, 2021.

GSA_MIGRATION