FAC Explorer

Audit 24583

FY End
2022-06-30
Total Expended
$6.83M
Findings
2
Programs
8
Organization: Housing Authority of the City of Del Rio (TX)
Year: 2022 Accepted: 2023-03-19
Auditor: Leal & Carter PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35225 2022-001 - Yes L
611667 2022-001 - Yes L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.88M Yes 1
10.766 Community Facilities Loans and Grants $1.29M - 0
14.850 Public and Indian Housing $682,056 - 0
14.872 Public Housing Capital Fund $523,835 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $174,923 - 0
14.871 Covid-19 Section 8 Housing Choice Vouchers $64,557 Yes 0
14.850 Covid-19 Public and Indian Housing $22,280 - 0
14.871 Section 8 Housing Choice Vouchers - Emergency Housing Vouchers $16,435 Yes 0

Contacts

Name Title Type
QMDXWTQ1UN55 Jorge Cuellar Auditee
8307746506 Norma L. Little Auditor
No contacts on file

Notes to SEFA

Title: NOTE C U.S. DEPARTMENT OF AGRICULTURE Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the PHA under programs of the federal government for the year endedJune 30, 2022. 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, CostPrinciples, and Audit Requirements for Federal Award (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the PHA, it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of the PHA.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1) Expenditures 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.(2) The PHA has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The PHA administers a Community Facilities Loans and Grants Program (CFDA 10.766) funded by the U.S. Department of Agriculture. At June 30, 2022, the loan balance for the program totaled$1,226,835. The promissory note balance outstanding at the beginning of the fiscal year is included in the total expenditures of federal awards presented in the Schedule. The PHA received noadditional loans during the year. Total grants received under the Community Facilities Loans and Grants Program are being reported as expenditures of federal awards.
Title: NOTE D SUBRECIPIENTS Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the PHA under programs of the federal government for the year endedJune 30, 2022. 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, CostPrinciples, and Audit Requirements for Federal Award (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the PHA, it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of the PHA.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1) Expenditures 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.(2) The PHA has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The PHA provided no federal awards to subrecipients during the year ended June 30, 2022

Finding Details

Finding 2022-001
REFERENCE NUMBER: 2022-001 FEDERAL PROGRAM: Housing Choice Voucher Program #14.871 NAME OF FEDERAL AGENCY: U.S. Department of Housing and Urban Development (HUD) COMPLIANCE REQUIREMENT: Reporting Criteria The PHA is required to submit the form HUD-50058, Family Report (OMB No. 2577-0083) electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). As per PHI notice 2011-65 reports must be submitted no later than 60 calendar days from the effective date of any action recorded on line 2b of the form HUD-50058 or form HUD-50058 MTW. Condition For 2 instances out of a sample of 40 Forms HUD-50058 tested, while we noted that the Forms HUD - 50058 were completed by the PHA during FY 2022, it appears such forms were not submitted electronically to HUD. For an additional 34 instances out of a sample of 40 Forms HUD-50058 tested, we noted that the related electronic submissions were completed 60 days or more after the HUD 50058 effective date, so it does not appear they were made timely. Questioned Costs None Effect For the 36 samples noted, the PHA does not appear to be submitting the Forms HUD - 50058 electronically to HUD based on HUD requirements. Recommendations We recommend that the PHA improve its policies and procedures, to include reviews by PHA staff, to ensure that the Form HUD- 50058 electronic submissions are completed and made on a timely basis in accordance with Section 8 program reporting compliance requirements. View of Responsible Official PHA agrees with finding.
Finding 2022-001
REFERENCE NUMBER: 2022-001 FEDERAL PROGRAM: Housing Choice Voucher Program #14.871 NAME OF FEDERAL AGENCY: U.S. Department of Housing and Urban Development (HUD) COMPLIANCE REQUIREMENT: Reporting Criteria The PHA is required to submit the form HUD-50058, Family Report (OMB No. 2577-0083) electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). As per PHI notice 2011-65 reports must be submitted no later than 60 calendar days from the effective date of any action recorded on line 2b of the form HUD-50058 or form HUD-50058 MTW. Condition For 2 instances out of a sample of 40 Forms HUD-50058 tested, while we noted that the Forms HUD - 50058 were completed by the PHA during FY 2022, it appears such forms were not submitted electronically to HUD. For an additional 34 instances out of a sample of 40 Forms HUD-50058 tested, we noted that the related electronic submissions were completed 60 days or more after the HUD 50058 effective date, so it does not appear they were made timely. Questioned Costs None Effect For the 36 samples noted, the PHA does not appear to be submitting the Forms HUD - 50058 electronically to HUD based on HUD requirements. Recommendations We recommend that the PHA improve its policies and procedures, to include reviews by PHA staff, to ensure that the Form HUD- 50058 electronic submissions are completed and made on a timely basis in accordance with Section 8 program reporting compliance requirements. View of Responsible Official PHA agrees with finding.