Madera Housing AuthorityLocal Government

Finding 2023-002 AL Number and Title: Financial Assessment Subsystem – Reporting – Noncompliance and Significant Deficiency Criteria: HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA). The submission of the FASSPHA is critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition: It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA reports to federal agencies. Cause: The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. Additionally, a change in auditor who had been instrumental in ensuring timely submissions in the past, with the new auditor becoming unreachable, further exacerbating the situation. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect or Potential Effect: The failure to submit these reports on time undermines the Authority's compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Questioned Costs: None. Context: This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Recommendation: To mitigate this issue, it is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Responsible Official's Response and Corrective Action Planned: Management acknowledges the audit findings and is committed to taking corrective actions.

Finding 2022-002 AL Number and Title: Various—Housing Voucher Cluster – Reporting – Noncompliance and Significant Deficiency Criteria: HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA), the Data Collection Form (SF-SAC) for the Single Audit, and the Section Eight Management Assessment Program (SEMAP) reports. These submissions are critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition: It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA, SF-SAC, and SEMAP reports to federal agencies. This delay in reporting has been noted for the first time in the current audit period. Cause: The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. Additionally, a change in auditor who had been instrumental in ensuring timely submissions in the past, with the new auditor becoming unreachable, further exacerbating the situation. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect or Potential Effect: The failure to submit these reports on time undermines the Authority's compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Questioned Costs: None. Context: This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Recommendation: To mitigate this issue, it is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Responsible Official's Response and Corrective Action Planned: Management acknowledges the audit findings and is committed to taking corrective actions.

Condition: The Housing Authority did not perform required Housing Quality Standards Inspections for all required units during the year under audit. Out of a sample of 40 participants, our audit identified 9 that did not have documented inspections within the required timeframes.

The Housing Authority does not have sufficient monitoring controls over the determination of the eligibility of participants within the Housing Choice Voucher (Section 8) Program.

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