FAC Explorer

Audit 19320

FY End
2022-06-30
Total Expended
$1.85M
Findings
4
Programs
3
Organization: Robeson County Housing Authority (NC)
Year: 2022 Accepted: 2023-01-26
Auditor: Patterson & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20608 2022-001 - Yes N
20609 2022-002 - - N
597050 2022-001 - Yes N
597051 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $1.13M Yes 2
14.872 Public Housing Capital Fund $657,945 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $63,964 - 0

Contacts

Name Title Type
M48RLFG2ULT1 Niakeya Cooper Auditee
9107384866 Laura Bailey Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1: Basis of Presentation The accompanying schedule of expenditures of federal awards (SEFA)includes the federal grant activity of the Authority under the programs of the federal government for theyear ended June 30, 2022. The information in this SEFA is presented in accordance with the requirementsof Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of theoperations of the Authority, it is not intended to and does not present the financial position, changes in netposition or cash flows of the Authority.Note 2: Summary of Significant Accounting Policies Expenditures reported in the SEFA are reportedon the modified accrual basis of accounting. Such expenditures are recognized following the cost principlescontained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited asto reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001: Statement of Condition ? For the Low Rent Public Housing program, we reviewed the budget for spending authorizations. During this review, it was discovered that the Authority had not budgeted for debt related monies spent for the year ended June 30, 2022. The Authority did not budget for debt service, resulting in unfavorable budget variances. Criteria ? The NC Local Government Commission states that the Authority must budget expenditures. Effect ? This violation resulted in an overspending. Cause ? The Authority did not follow proper budgeting procedures. Recommendation ? The Authority should review budget versus actual expenditures on a monthly or quarterly basis and should amend the budget as spending needs arise. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-001.
Finding 2022-002
2022-002: Statement of Condition ? For the Low Rent Public Housing program, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended June 30, 2022. We reviewed 5 files for tenant who moved out during the fiscal year ended June 30, 2022. The selected files represented a sample of all files in the two AMPS. We noted 2 instances in which social security income was incorrectly calculated and 1 instance in which net wages (instead of gross wages) were used in determining total tenant income. Criteria ? Per the Public Housing Occupancy Guidebook (Section 3.9), ?The gross amount of social security benefit income, prior to Medicare or other deductions, must be counted as income??. Effect ? For the files referenced above, the calculations used an incorrect amount for social security benefits and wages. The net effect of these errors was to understate tenant rental income by $9 per month. Cause ? Incomplete procedures were followed in regards to calculating tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.
Finding 2022-001
2022-001: Statement of Condition ? For the Low Rent Public Housing program, we reviewed the budget for spending authorizations. During this review, it was discovered that the Authority had not budgeted for debt related monies spent for the year ended June 30, 2022. The Authority did not budget for debt service, resulting in unfavorable budget variances. Criteria ? The NC Local Government Commission states that the Authority must budget expenditures. Effect ? This violation resulted in an overspending. Cause ? The Authority did not follow proper budgeting procedures. Recommendation ? The Authority should review budget versus actual expenditures on a monthly or quarterly basis and should amend the budget as spending needs arise. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-001.
Finding 2022-002
2022-002: Statement of Condition ? For the Low Rent Public Housing program, we reviewed 40 tenant files (recertification files and new tenant files) for fiscal year ended June 30, 2022. We reviewed 5 files for tenant who moved out during the fiscal year ended June 30, 2022. The selected files represented a sample of all files in the two AMPS. We noted 2 instances in which social security income was incorrectly calculated and 1 instance in which net wages (instead of gross wages) were used in determining total tenant income. Criteria ? Per the Public Housing Occupancy Guidebook (Section 3.9), ?The gross amount of social security benefit income, prior to Medicare or other deductions, must be counted as income??. Effect ? For the files referenced above, the calculations used an incorrect amount for social security benefits and wages. The net effect of these errors was to understate tenant rental income by $9 per month. Cause ? Incomplete procedures were followed in regards to calculating tenant income. Recommendation ? Procedures surrounding tenant rent calculation processes should be strengthened.