EIN: 866000735
UEI: PMRUAFJ48JE8
Data as of August 24, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 3, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 3, 2024 (844 days ago).
What is a management decision? →Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: CBDG‐Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers: B‐20‐MC‐04‐0503, B‐21‐MC‐04‐0503, B‐22‐MC‐04‐0503, and B‐20‐MW‐04‐0503 Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Under 2 CFR §200.303, the City is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CDBG program regulations require the City to file financial reports throughout the year. First, the City is required to file accurate PR26‐CDBG Financial Summary and the PR26‐CDBG‐CV Financial Summary Reports within 90 days after fiscal year end. Second, the City is also required to file PR29 – CDBG Cash on Hand and PR29 – CDBG‐CV Cash On Hand Reports by the end of the month subsequent to each quarter end. 2 CFR Part 170 requires the City to submit subaward information through the FFATA Subaward Reporting System (FSRS) in compliance with the Federal Funding Accountability and Transparency Act by the end of the month subsequent to the award. Condition Reporting obligations were not completed timely or accurately. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2020‐21. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City was not fully in compliance with reporting requirements. Context We noted the following items when reviewing reports submitted for the CDBG program. The PR26 reports for the 2020 and 2021 program years contained inaccuracies in the beginning unexpended CDBG funds, program income, or expenditure activity for each year. The City corrected these inaccuracies to properly present information on the PR26 report for program year 2023. The City did not submit PR29 reports for both the CDBG and CDBG‐CV programs quarterly. The last PR29 report submitted was for the quarter ended December 31, 2021 before the City completed all delinquent reporting in October 2023. The City was submitting the FFATA reporting annually rather than by the end of the month subsequent to an award. Recommendation The City should dedicate time and resources to allow individuals to resolve discrepancies in reporting within the Community Assistance Office. Views Of Responsible Officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: CBDG‐Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers: B‐20‐MC‐04‐0503, B‐21‐MC‐04‐0503, B‐22‐MC‐04‐0503, and B‐20‐MW‐04‐0503 Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria Under 2 CFR §200.303, the City is required to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CDBG program regulations require the City to file financial reports throughout the year. First, the City is required to file accurate PR26‐CDBG Financial Summary and the PR26‐CDBG‐CV Financial Summary Reports within 90 days after fiscal year end. Second, the City is also required to file PR29 – CDBG Cash on Hand and PR29 – CDBG‐CV Cash On Hand Reports by the end of the month subsequent to each quarter end. 2 CFR Part 170 requires the City to submit subaward information through the FFATA Subaward Reporting System (FSRS) in compliance with the Federal Funding Accountability and Transparency Act by the end of the month subsequent to the award. Condition Reporting obligations were not completed timely or accurately. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2020‐21. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City was not fully in compliance with reporting requirements. Context We noted the following items when reviewing reports submitted for the CDBG program. The PR26 reports for the 2020 and 2021 program years contained inaccuracies in the beginning unexpended CDBG funds, program income, or expenditure activity for each year. The City corrected these inaccuracies to properly present information on the PR26 report for program year 2023. The City did not submit PR29 reports for both the CDBG and CDBG‐CV programs quarterly. The last PR29 report submitted was for the quarter ended December 31, 2021 before the City completed all delinquent reporting in October 2023. The City was submitting the FFATA reporting annually rather than by the end of the month subsequent to an award. Recommendation The City should dedicate time and resources to allow individuals to resolve discrepancies in reporting within the Community Assistance Office. Views Of Responsible Officials See Corrective Action Plan.
Complete all PR26 and PR29 for CDBG and CV by November 17, 2023. The Community Assistance Office met with Housing and Urban Development on a weekly basis to reconcile grant funds within the 2020‐2025 Five‐Year Consolidated Action Plan beginning June 9, 2023. Training was provided to Community Assistance Office staff through Housing and Urban Development and through Cloudburst Consulting to ensure key staff positions responsible for the completion of these reports is full trained. Develop a Master Calendar for the Community Assistance Office with re‐occurring reports to include the PR26, PR29 and including FFATA to ensure they are completed accurately and timely. PR26 for CDBG and PR29 for CDBG and CDBG‐CV have been submitted as of October 25, 2023, and the HUD concluded weekly meetings with the Scottsdale Community Assistance Office on October 20, 2023. PR26 for CDBG‐CV will be completed and submitted by November 17, 2023. Policies will be updated to reflect 2 CFR 170 requiring the City to submit subaward information through the Federal Funding Accountability and Transparency Act by the end of the month subsequent to an award.
Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: CDBG‐Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: B‐20‐MC‐04‐0503 Pass‐Through Agency: N/A Questioned Costs: $255,750 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §58.22 requires Housing and Urban Development (HUD) to approve a request for release of funds (RROF) before the City can obligate or expend CDBG grant funds. Condition The City could not provide a HUD‐approved RROF for one project funded with Program Year 2020 monies. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2021. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City was not in compliance with 24 CFR §58.22. Context HUD approval of the RROF for the Piute Splashpad project in fiscal year 2019‐20 was not retained. The City was, therefore, required to remit to HUD the $255,750 expended on the project. The funds were returned in June and July 2023. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should dedicate time and resources to the Community Assistance Office to ensure that key compliance documents are maintained for the program. Views of Responsible Officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2023‐002 Repeat Finding: No Program Name/Assistance Listing Title: CDBG‐Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: B‐20‐MC‐04‐0503 Pass‐Through Agency: N/A Questioned Costs: $255,750 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §58.22 requires Housing and Urban Development (HUD) to approve a request for release of funds (RROF) before the City can obligate or expend CDBG grant funds. Condition The City could not provide a HUD‐approved RROF for one project funded with Program Year 2020 monies. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2021. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City was not in compliance with 24 CFR §58.22. Context HUD approval of the RROF for the Piute Splashpad project in fiscal year 2019‐20 was not retained. The City was, therefore, required to remit to HUD the $255,750 expended on the project. The funds were returned in June and July 2023. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should dedicate time and resources to the Community Assistance Office to ensure that key compliance documents are maintained for the program. Views of Responsible Officials See Corrective Action Plan.
The Community Assistance Office completed a Housing and Urban Development (HUD) Environmental Review audit on February 14, 2023, resulting in a Corrective Action Plan to pay back funding for a statutory and regulatory violation of failure to retain an Authority to Use Grant Funds. A Corrective Action Plan was submitted to HUD on March 10, 2023, that included the following most notable items: 1) Update environmental review policies to ensure compliance with 24CFR 58.22 with financial controls, retention, and the funding process, 2) Repayment of $255,750 to the CDBG line of credit and ensure no future CDBG funds are used for this purpose and 3) Staff training and development. Community Development Block Grant staff, including the supervisor and manager complete a webbased instruction system for environmental reviews through the HUD Exchange as recommended by October 31, 2023. In September 2023 two staff members attended an in person Environmental Review Training in San Francisco, CA through the Office of Environment and Energy. The $255,750 was repaid to the line of credit in two installments in June 2023 and August 2023. These funds will be re‐programmed for future eligible CDBG funding activities in the Annual Action Plan for FY 2024‐2025. Community Assistance Policies for financial controls, retention and the funding process will be updated and completed by January 1, 2024.
Finding Number: 2023‐003 Repeat Finding: No Program Name/Assistance Listing Title: CDBG‐Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: B‐21‐MC‐04‐0503 Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Program Income Criteria 24 CFR §570.504 requires the City to accurately record the receipt and expenditure of program income as part of financial transactions of the CDBG program. Condition Program income on the PR26 – CDBG Financial Summary Report for Program Year 2021 was not reported. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2021. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City was not in compliance with 24 CFR §570.504. The City had to revise the PR26 for Program Year 2021. Context The City did not report program income of $310,165 received during fiscal year 2021‐22 on the PR26 – CDBG Financial Summary Report. The program income was properly reported in the City’s financial records. The City revised the PR26 report for Program Year 2022 in October 2023 to correct the errors. Recommendation The Community Assistance Office should continue to review reports for accuracy and completeness prior to submission. The City should dedicate sufficient time and resources to ensure compliance. Views of Responsible Officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2023‐003 Repeat Finding: No Program Name/Assistance Listing Title: CDBG‐Entitlement Grants Cluster Assistance Listing Number: 14.218 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: B‐21‐MC‐04‐0503 Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Program Income Criteria 24 CFR §570.504 requires the City to accurately record the receipt and expenditure of program income as part of financial transactions of the CDBG program. Condition Program income on the PR26 – CDBG Financial Summary Report for Program Year 2021 was not reported. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2021. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City was not in compliance with 24 CFR §570.504. The City had to revise the PR26 for Program Year 2021. Context The City did not report program income of $310,165 received during fiscal year 2021‐22 on the PR26 – CDBG Financial Summary Report. The program income was properly reported in the City’s financial records. The City revised the PR26 report for Program Year 2022 in October 2023 to correct the errors. Recommendation The Community Assistance Office should continue to review reports for accuracy and completeness prior to submission. The City should dedicate sufficient time and resources to ensure compliance. Views of Responsible Officials See Corrective Action Plan.
Program Income of $310,165 was recognized during FY 2022‐2023 through a substantial amendment to the Annual Action Plan adopted by the Mayor and City Council in January 2023. The Community Assistance Office followed the recommended guidelines of the Citizen Participation Plan to complete a substantial amendment as mandated. All program income was receipted correctly into the Integrated and Information Disbursement System (IDIS) for HUD. All program income funds have been reconciled through the Consolidated Action Plan 2020‐2025 and accurate PR26 have been completed and submitted through weekly meetings with the assigned representative since June of 2023.
Finding Number: 2023‐004 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria 24 CFR §908 requires public housing agencies to electronically submit the HUD‐50058 form each time the agency completes a program admission, examination, or other change in the family unit. The information submitted should agree to a program participants file. Condition Information reported on the HUD‐50058 forms was not always consistent with the program participant’s file. Cause Every time there is an action to a housing choice voucher participant, the 50058 is updated in the Scottsdale Housing Choice Voucher software system by staff, and these updates are submitted on a monthly basis through the Real Estate Assessment Center. Cause is through human error. Effect The City was not in compliance with 24 CFR §908. Context Errors were noted on eight of 40 HUD‐50058 forms reviewed. The errors included: Two forms listed incorrect birth dates for family members. One form listed an incorrect social security number listed for a family member. One form listed an incorrect family member name. One form listed the previous HQS inspection incorrectly. One form listed an incorrect birth date for a family member and listed an incorrect date of admission to the program. One form listed an incorrect date for admission to the program. One form reviewed did not have a social security card on file. The sample was not intended to be, and was not, a statistically valid sample. Page 16 City of Scottsdale, Arizona Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐004 Recommendation The Community Assistance Office should increase review procedures to ensure that each HUD‐50058 form is reviewed prior to submission for accuracy. Views of Responsible Officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2023‐004 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Criteria 24 CFR §908 requires public housing agencies to electronically submit the HUD‐50058 form each time the agency completes a program admission, examination, or other change in the family unit. The information submitted should agree to a program participants file. Condition Information reported on the HUD‐50058 forms was not always consistent with the program participant’s file. Cause Every time there is an action to a housing choice voucher participant, the 50058 is updated in the Scottsdale Housing Choice Voucher software system by staff, and these updates are submitted on a monthly basis through the Real Estate Assessment Center. Cause is through human error. Effect The City was not in compliance with 24 CFR §908. Context Errors were noted on eight of 40 HUD‐50058 forms reviewed. The errors included: Two forms listed incorrect birth dates for family members. One form listed an incorrect social security number listed for a family member. One form listed an incorrect family member name. One form listed the previous HQS inspection incorrectly. One form listed an incorrect birth date for a family member and listed an incorrect date of admission to the program. One form listed an incorrect date for admission to the program. One form reviewed did not have a social security card on file. The sample was not intended to be, and was not, a statistically valid sample. Page 16 City of Scottsdale, Arizona Schedule of Findings and Questioned Costs Year Ended June 30, 2023 Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐004 Recommendation The Community Assistance Office should increase review procedures to ensure that each HUD‐50058 form is reviewed prior to submission for accuracy. Views of Responsible Officials See Corrective Action Plan.
Housing and Urban Development uses an Inventory Management System to review and monitor information submitted by public housing authorities through the 50058 form which is the system of record. To assist Scottsdale Housing Agency, HUD has developed the Public Information Center (PIC) Error Dashboard that provides a summary analysis and overview of PIC errors. The PIC errors needing correction are updated on the first Tuesday of each month for Public Housing Agencies (PHA) to review and correct. The PIC errors identified were corrected in June 2023 through the monthly review and PIC submission. On average once corrections are submitted it takes 60‐90 days for the correction to be recognized and removed from the system. The Housing Choice Voucher Supervisor meets with the Housing Specialist monthly and resolves all PIC errors as a team effort.
Finding Number: 2023‐005 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §982.405 requires a public housing agency to inspect units leased to determine if they meet Housing Quality Standards (HQS). If a unit fails an inspection, it must be repaired within 30 days if not a life‐threatening condition. Condition Not all units that failed HQS inspections were repaired within the required 30‐day window. Cause The Community Assistance Office, experienced turnover in the occupancy specialist position responsible for the inspections and while the position was in recruitment interim staff completed the inspections resulting in lack of documentation in the paper file regarding the extension for the installation of the microwave. Effect The City was not in compliance with 24 CFR §982.405. Context For one of six HQS failed inspections reviewed, the non‐life‐threatening repairs were not made within the 30‐day window. An extension was granted but was not documented in the participant’s file. Ultimately, the inspection was passed 40 days after the original failure with no HAP payments required to be abated. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should update policies and procedures within the Community Assistance Office to ensure that any extensions for repairs related failed HQS inspections are adequately documented in participant files. Views of Responsible Officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2023‐005 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §982.405 requires a public housing agency to inspect units leased to determine if they meet Housing Quality Standards (HQS). If a unit fails an inspection, it must be repaired within 30 days if not a life‐threatening condition. Condition Not all units that failed HQS inspections were repaired within the required 30‐day window. Cause The Community Assistance Office, experienced turnover in the occupancy specialist position responsible for the inspections and while the position was in recruitment interim staff completed the inspections resulting in lack of documentation in the paper file regarding the extension for the installation of the microwave. Effect The City was not in compliance with 24 CFR §982.405. Context For one of six HQS failed inspections reviewed, the non‐life‐threatening repairs were not made within the 30‐day window. An extension was granted but was not documented in the participant’s file. Ultimately, the inspection was passed 40 days after the original failure with no HAP payments required to be abated. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should update policies and procedures within the Community Assistance Office to ensure that any extensions for repairs related failed HQS inspections are adequately documented in participant files. Views of Responsible Officials See Corrective Action Plan.
Update policies and procedures for NSPIRE Inspections to ensure any extensions for repairs are adequately documented within the participant’s files. (Paper and electronic)
Finding Number: 2023‐006 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §982.158 requires public housing agencies to maintain complete and accurate accounts including the balances of HAP and administrative fee equity. Condition The City’s internal controls were not functioning to ensure equity balances were properly stated throughout the fiscal year. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2020‐21. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City’s HAP and administrative equity balances were not always properly stated. Context The City was not regularly reconciling HAP and administrative equity balances throughout the current and prior fiscal years. Record reviews were required back to fiscal year 2020‐21 and reconciled moving forward through the end of fiscal year 2022‐23 to ensure the program equity records were complete and accurate. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should dedicate time and resources to allow individuals to resolve discrepancies in reporting within the Community Assistance Office. Views of Responsible Officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2023‐006 Repeat Finding: No Program Name/Assistance Listing Title: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: AZ032VO Pass‐Through Agency: N/A Questioned Costs: $0 Type of Finding: Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria 24 CFR §982.158 requires public housing agencies to maintain complete and accurate accounts including the balances of HAP and administrative fee equity. Condition The City’s internal controls were not functioning to ensure equity balances were properly stated throughout the fiscal year. Cause The Community Assistance Office experienced turnover and vacancies in key positions responsible for reporting during fiscal year 2020‐21. Training was needed for program employees to fully understand reporting responsibilities for the City. In some cases information was not retained and required recreation. Effect The City’s HAP and administrative equity balances were not always properly stated. Context The City was not regularly reconciling HAP and administrative equity balances throughout the current and prior fiscal years. Record reviews were required back to fiscal year 2020‐21 and reconciled moving forward through the end of fiscal year 2022‐23 to ensure the program equity records were complete and accurate. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The City should dedicate time and resources to allow individuals to resolve discrepancies in reporting within the Community Assistance Office. Views of Responsible Officials See Corrective Action Plan.
Grants Accountant received training from a certified public accountant / housing authority specialist to ensure the restricted net position (RNP) monthly reconciliation. All HAP and administrative equity balances are now properly stated.
FAC accepted this audit on February 16, 2021 — management decision was due August 16, 2021.
Finding Number: 2020-001 Repeat Finding: No Program Name/CFDA Title: Housing Voucher Cluster CFDA Number: 14.871 Federal Agency: Department of Housing and Urban Development Federal Award Number: AZ032AF, AZ032VO Pass-Through Agency: N/A Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Eligibility CRITERIA At the time a family initially receives tenant-based assistance for occupancy of a dwelling unit, and where the gross rent of the unit exceeds the applicable payment standard for the family, the family share does not exceed 40 percent of the family?s monthly adjusted income (24 CFR 982.305(a)(5). CONDITION The City?s Housing Agency improperly approved tenant-based assistance for a dwelling unit that exceeded 40 percent of a family?s monthly adjusted income. CAUSE This error was likely a result of the 40 percent limit being calculated on the normal housing assistance payment (HAP) rather than the prorated HAP for the mixed family. Additionally, the error was not detected when the supervisor reviewed the file. EFFECT The City improperly approved a family for tenant-based assistance. CONTEXT For one of 40 tenant files reviewed, the total tenant payment of $556 exceeded the calculated maximum of $365. The tenant payment represents 61 percent of the mixed family?s monthly adjusted income. The population of mixed families with prorated HAPs is limited to three families during the current fiscal year. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The City should work with their housing software vendor to ensure there are automated controls in place to detect and alert housing staff of rent in excess of 40 percent of the mixed family?s monthly adjusted income. The supervisor should also review the tenant file for compliance before approval. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2020-001 Repeat Finding: No Program Name/CFDA Title: Housing Voucher Cluster CFDA Number: 14.871 Federal Agency: Department of Housing and Urban Development Federal Award Number: AZ032AF, AZ032VO Pass-Through Agency: N/A Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Eligibility CRITERIA At the time a family initially receives tenant-based assistance for occupancy of a dwelling unit, and where the gross rent of the unit exceeds the applicable payment standard for the family, the family share does not exceed 40 percent of the family?s monthly adjusted income (24 CFR 982.305(a)(5). CONDITION The City?s Housing Agency improperly approved tenant-based assistance for a dwelling unit that exceeded 40 percent of a family?s monthly adjusted income. CAUSE This error was likely a result of the 40 percent limit being calculated on the normal housing assistance payment (HAP) rather than the prorated HAP for the mixed family. Additionally, the error was not detected when the supervisor reviewed the file. EFFECT The City improperly approved a family for tenant-based assistance. CONTEXT For one of 40 tenant files reviewed, the total tenant payment of $556 exceeded the calculated maximum of $365. The tenant payment represents 61 percent of the mixed family?s monthly adjusted income. The population of mixed families with prorated HAPs is limited to three families during the current fiscal year. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The City should work with their housing software vendor to ensure there are automated controls in place to detect and alert housing staff of rent in excess of 40 percent of the mixed family?s monthly adjusted income. The supervisor should also review the tenant file for compliance before approval. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
Finding Number: 2020-001 Program Name/CFDA Title: Housing Voucher Cluster CFDA Number: 14.871 Contact Person: Irma Hollamby, Community Assistance Office Manager Anticipated Completion Date: February 17, 2021 Planned Corrective Action: a. Staffing: The staff person and supervisor who made the identified errors are no longer with the Scottsdale Housing Agency. b. Quality Control: SHA currently performs QC file reviews on 100% of its monthly actions before approval and payment. The QCs are led by a Lead Housing Specialist well versed in housing subsidy calculations and who recently received certification in HCV Program Management & Supervision. c. Technology: SHA converted to a new enterprise software system effective January 2020. Emphasys/Elite does have automated controls in place and provides notification via a warning if the 40% rule is violated. d. Training: All SHA Housing Specialists will receive training in assisting Prorated Families and the associated calculations and 40% rule policy on February 17, 2021. Additionally, SHA developed a spreadsheet tool to manually walk each housing specialist through the proration of housing assistance. Our practice will be to manually calculate the assistance in addition to relying on the calculations made in the Elite software system. Training on use of this tool will also occur on February 17, 2021.
FAC accepted this audit on November 13, 2018 — management decision was due May 13, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on November 20, 2017 — management decision was due May 20, 2018.
GSA_MIGRATION
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GSA_MIGRATION
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