Audit 16182

FY End

2022-06-30

Total Expended

$2.23M

Findings

2

Programs

1

Organization: St. Francis County Housing Authority (AR)

Year: 2022 Accepted: 2023-03-30

Auditor: Miller & Rose P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
12124	2022-002	Significant Deficiency	Yes	B
588566	2022-002	Significant Deficiency	Yes	B

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$2.23M	Yes	1

Contacts

Name	Title	Type
K7M8FW6U6J25	Judy Triggs	Auditee
8706332781	L. Scott Rose	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Francis County Housing Authority under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the pared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of St. Francis County Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of St. Francis County Housing Authority.NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.NOTE 3 INDIRECT COST RATESt. Francis County Housing Authority has not made an election to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002

2022-002 Ineligible Expenditures Federal Program: Housing Choice Voucher Program, CFDA No. 14.871 Criteria: All payments must be eligible items under federal guidelines. Condition: During the fiscal year ending June 30, 2022 CARES Act funds were used to provide funds to the board members. Each board member was provided a check in the amount of $2,500. Two of the board members returned their check prior to cashing them once they found out it was not allowed. Questioned costs: $5,000. Effect: Payments were made that are not allowable under HUD of federal guidelines. Cause: PHA was not aware of the limitations in place for payments made to board members. Repeat Finding: This finding was reported in the prior audit as item 2021-002. Recommendation: Reimbursement for the payments should be made to the Housing Authority. Views of responsible officials and planned corrective actions: We have begun the process of reimbursing the amounts paid to the board members and will refrain from making these payments in the future.

Finding 2022-002

2022-002 Ineligible Expenditures Federal Program: Housing Choice Voucher Program, CFDA No. 14.871 Criteria: All payments must be eligible items under federal guidelines. Condition: During the fiscal year ending June 30, 2022 CARES Act funds were used to provide funds to the board members. Each board member was provided a check in the amount of $2,500. Two of the board members returned their check prior to cashing them once they found out it was not allowed. Questioned costs: $5,000. Effect: Payments were made that are not allowable under HUD of federal guidelines. Cause: PHA was not aware of the limitations in place for payments made to board members. Repeat Finding: This finding was reported in the prior audit as item 2021-002. Recommendation: Reimbursement for the payments should be made to the Housing Authority. Views of responsible officials and planned corrective actions: We have begun the process of reimbursing the amounts paid to the board members and will refrain from making these payments in the future.