FAC Explorer

Audit 13376

FY End
2023-03-31
Total Expended
$2.67M
Findings
6
Programs
4
Organization: Williamston Housing Authority (NC)
Year: 2023 Accepted: 2024-01-24
Auditor: Gregory T Redman CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9658 2023-002 Material Weakness - C
9659 2023-003 Material Weakness - B
9660 2023-003 Material Weakness - B
586100 2023-002 Material Weakness - C
586101 2023-003 Material Weakness - B
586102 2023-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
14.182 Section 8 New Construction and Substantial Rehabilitation $823,082 - 0
14.850 Public and Indian Housing $667,069 Yes 1
14.871 Section 8 Housing Choice Vouchers $501,372 - 1
14.872 Public Housing Capital Fund $491,586 - 0

Contacts

Name Title Type
GXDQKSP3QVR8 Michael Gaddy Auditee
2527925889 Greg Redman Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the Williamston Housing Authority under the programs of the federal government for the year ended March 31, 2023. The information in this SEFA is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of Williamston Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Williamston Housing Authority. Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement De Minimis Rate Used: N Rate Explanation: No indirect costs. Williamston Housing Authority had the following loan balances outstanding at March 31, 2023 for loans that the grantor/pass-through grantor has still imposed continuing compliance requirements. Loans outstanding at the beginning of the year and loans made during the year are included in the SEFA. The balance of loans outstanding at March 31, 2023 consist of: Program Title: N/C S/R Section 8 Rural Housing Loan CFDA Number: 14.182 Pass-through Grantor's Number: - Amount Outstanding: $ 793,02

Finding Details

Finding 2023-002
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness N/C S/R Section 8 CFDA 14.182 Finding 2023-002 Cash Management Criteria: The housing authority is to maintain all properties in good physical condition. Statement of Condition: HUD’s Real Estate Assessment Center inspected the Project and the resulting score was a 52c. The inspection report identified serious deficiencies and demonstrated that the owner was in default of its statutory, contractual and/or regulatory duties to maintain the Project in a decent, safe and sanitary condition. Questioned Cost: N/A Cause: Lack of proper oversight by management of the physical condition of the properties. Effect: Disbursements to the Project’s owner by USDA were suspended until the deficiencies were corrected. Identification of a repeat finding: No Recommendation: The Board and management should establish policies to monitor the physical condition of the properties. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. Upon receipt of the physical inspection results, the Authority worked diligently to rectify the physical deficiencies. All disbursements by the USDA have been resumed
Finding 2023-003
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness Public and Indian Housing – CFDA 14.850 Housing Choice Voucher – CFDA 14.871 Finding 2023-003 Allowable Costs Criteria: Per 2 CFR 200.405, the Authority is required to develop, document, and adopt a Cost Allocation Plan for all federally funded programs. Statement of Condition: The Authority did not have an official Cost Allocation Plan adopted by the Board during the year. Accordingly, the Authority did not allocate shared costs among its programs using a reasonable and documented basis. Questioned Cost: N/A Cause: Lack of a proper Cost Allocation Plan. Effect: The Authority did not have a consistent methodology to allocate costs between programs. Identification of a repeat finding: No Recommendation: The Board and management should prepare and adopt a Cost Allocation Plan to be used to share costs between all federally funded programs. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. The Authority has adopted a Cost Allocation Plan which is being used to allocate shared costs.
Finding 2023-003
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness Public and Indian Housing – CFDA 14.850 Housing Choice Voucher – CFDA 14.871 Finding 2023-003 Allowable Costs Criteria: Per 2 CFR 200.405, the Authority is required to develop, document, and adopt a Cost Allocation Plan for all federally funded programs. Statement of Condition: The Authority did not have an official Cost Allocation Plan adopted by the Board during the year. Accordingly, the Authority did not allocate shared costs among its programs using a reasonable and documented basis. Questioned Cost: N/A Cause: Lack of a proper Cost Allocation Plan. Effect: The Authority did not have a consistent methodology to allocate costs between programs. Identification of a repeat finding: No Recommendation: The Board and management should prepare and adopt a Cost Allocation Plan to be used to share costs between all federally funded programs. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. The Authority has adopted a Cost Allocation Plan which is being used to allocate shared costs.
Finding 2023-002
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness N/C S/R Section 8 CFDA 14.182 Finding 2023-002 Cash Management Criteria: The housing authority is to maintain all properties in good physical condition. Statement of Condition: HUD’s Real Estate Assessment Center inspected the Project and the resulting score was a 52c. The inspection report identified serious deficiencies and demonstrated that the owner was in default of its statutory, contractual and/or regulatory duties to maintain the Project in a decent, safe and sanitary condition. Questioned Cost: N/A Cause: Lack of proper oversight by management of the physical condition of the properties. Effect: Disbursements to the Project’s owner by USDA were suspended until the deficiencies were corrected. Identification of a repeat finding: No Recommendation: The Board and management should establish policies to monitor the physical condition of the properties. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. Upon receipt of the physical inspection results, the Authority worked diligently to rectify the physical deficiencies. All disbursements by the USDA have been resumed
Finding 2023-003
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness Public and Indian Housing – CFDA 14.850 Housing Choice Voucher – CFDA 14.871 Finding 2023-003 Allowable Costs Criteria: Per 2 CFR 200.405, the Authority is required to develop, document, and adopt a Cost Allocation Plan for all federally funded programs. Statement of Condition: The Authority did not have an official Cost Allocation Plan adopted by the Board during the year. Accordingly, the Authority did not allocate shared costs among its programs using a reasonable and documented basis. Questioned Cost: N/A Cause: Lack of a proper Cost Allocation Plan. Effect: The Authority did not have a consistent methodology to allocate costs between programs. Identification of a repeat finding: No Recommendation: The Board and management should prepare and adopt a Cost Allocation Plan to be used to share costs between all federally funded programs. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. The Authority has adopted a Cost Allocation Plan which is being used to allocate shared costs.
Finding 2023-003
Section II – Financial Statement Findings Section III - Federal Award Findings and Questioned Costs Material Weakness Public and Indian Housing – CFDA 14.850 Housing Choice Voucher – CFDA 14.871 Finding 2023-003 Allowable Costs Criteria: Per 2 CFR 200.405, the Authority is required to develop, document, and adopt a Cost Allocation Plan for all federally funded programs. Statement of Condition: The Authority did not have an official Cost Allocation Plan adopted by the Board during the year. Accordingly, the Authority did not allocate shared costs among its programs using a reasonable and documented basis. Questioned Cost: N/A Cause: Lack of a proper Cost Allocation Plan. Effect: The Authority did not have a consistent methodology to allocate costs between programs. Identification of a repeat finding: No Recommendation: The Board and management should prepare and adopt a Cost Allocation Plan to be used to share costs between all federally funded programs. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. The Authority has adopted a Cost Allocation Plan which is being used to allocate shared costs.