FAC Explorer

Audit 18247

FY End
2022-09-30
Total Expended
$1.21M
Findings
4
Programs
2
Organization: Timber Hills Housing of Alcorn County, INC (MS)
Year: 2022 Accepted: 2023-06-29
Auditor: Harper Rains Knight & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
26297 2022-001 Material Weakness Yes E
26298 2022-002 Significant Deficiency Yes E
602739 2022-001 Material Weakness Yes E
602740 2022-002 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.14M Yes 2
14.195 Section 8 Housing Assistance Payments Program $63,595 - 0

Contacts

Name Title Type
JDNNC1CL3LF7 Scott Russell Auditee
6018562362 Joey Fletcher Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes federal award activity of the Project and is presented on the accrual basis of accounting. The information in this schedule is presented 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 presented only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Project.NOTE B - 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1142900.

Finding Details

Finding 2022-001
Type of Finding: Material Weakness / Noncompliance Repeat Finding: Finding is a repeat finding from prior year. Prior year reference 2021-001. Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis. Condition: The Project did not request tenant assistance payments for one tenant for the entire year and failed to remove two tenants who moved out, collecting additional payments for seven months. Cause: The Project's controls over monthly housing assistance payments were not working properly. Effect or Potential Effect: The incorrect request of tenant funds could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project failed to complete the monthly housing assistance payment vouchers correctly for all twelve months. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should obtain complete an accurate housing assistance payment voucher each month and reconcile all amounts requested to the accounts receivable ledger each month. Views of Responsible Officials: Management concurs with the finding. Management will submit an updated housing assistance payment voucher to correct for the unrequested funds
Finding 2022-002
Type of Finding: Significant Deficiency / Noncompliance Repeat Finding: Finding is a repeat finding from prior year. Prior year reference 2021-002. Criteria: The Regulatory Agreement requires the Project to acquire specific documentation in determining tenant eligibility. Condition: The Project could not provide all requested documents for selected tenants. Cause: The Project's controls over tenant eligibility were not working properly. Effect or Potential Effect: The missing tenant file documents are noncompliance that could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project failed to acquire and/or maintain appropriate documentation from tenants through initial application and renewal. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should obtain all appropriate documentation for tenants in order to maintain compliance with their Regulatory Agreement. Views of Responsible Officials: Management concurs with the finding. Management will contact tenants and ensure that all appropriate documentation is obtained.
Finding 2022-001
Type of Finding: Material Weakness / Noncompliance Repeat Finding: Finding is a repeat finding from prior year. Prior year reference 2021-001. Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis. Condition: The Project did not request tenant assistance payments for one tenant for the entire year and failed to remove two tenants who moved out, collecting additional payments for seven months. Cause: The Project's controls over monthly housing assistance payments were not working properly. Effect or Potential Effect: The incorrect request of tenant funds could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project failed to complete the monthly housing assistance payment vouchers correctly for all twelve months. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should obtain complete an accurate housing assistance payment voucher each month and reconcile all amounts requested to the accounts receivable ledger each month. Views of Responsible Officials: Management concurs with the finding. Management will submit an updated housing assistance payment voucher to correct for the unrequested funds
Finding 2022-002
Type of Finding: Significant Deficiency / Noncompliance Repeat Finding: Finding is a repeat finding from prior year. Prior year reference 2021-002. Criteria: The Regulatory Agreement requires the Project to acquire specific documentation in determining tenant eligibility. Condition: The Project could not provide all requested documents for selected tenants. Cause: The Project's controls over tenant eligibility were not working properly. Effect or Potential Effect: The missing tenant file documents are noncompliance that could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project failed to acquire and/or maintain appropriate documentation from tenants through initial application and renewal. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should obtain all appropriate documentation for tenants in order to maintain compliance with their Regulatory Agreement. Views of Responsible Officials: Management concurs with the finding. Management will contact tenants and ensure that all appropriate documentation is obtained.