FAC Explorer

Audit 24931

FY End
2022-09-30
Total Expended
$5.24M
Findings
4
Programs
4
Organization: Chillicothe Metropolitan Housing Authority (OH)
Year: 2022 Accepted: 2023-06-19
Auditor: Keith Faber Auditor of State

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22109 2022-001 Material Weakness - I
22110 2022-002 Significant Deficiency - AB
598551 2022-001 Material Weakness - I
598552 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $1.32M Yes 2
14.872 Public Housing Capital Fund $385,372 - 0
14.896 Family Self-Sufficiency Program $152,397 - 0
14.871 Section 8 Housing Choice Vouchers $42,275 - 0

Contacts

Name Title Type
RBFJVKA7V1G2 Nicole Wells Auditee
7407757881 Cristal Jones Auditor
No contacts on file

Notes to SEFA

Title: Note 1: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the GAAP 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. Shown as Note 2 in report. De Minimis Rate Used: N Rate Explanation: Chillicothe Metropolitan Housing Authority has elected not to use the 10 percent de-minimis indirect cost rate allowed under the Uniform Guidance. shown as Note 3 in report. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Chillicothe Metropolitan Housing Authority under programs of the federal government for the year ended September 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Chillicothe Metropolitan Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of Chillicothe Metropolitan Housing Authority.

Finding Details

Finding 2022-001
Material Weakness and Noncompliance 2 C.F.R. ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. ? 200.318(a) which states the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. The Authority?s Procurement Policy states for micro purchases not exceeding $3,000, the purchaser should use a micro purchase order. Although the Authority did have an established Procurement Policy, they did not have purchase orders or contracts on file for 2 of the 50 purchases tested as stated in their policy. Failure to have proper controls in place to ensure the aforementioned policy is being followed could result in the Authority spending more in Federal monies than needed. The Authority should follow their established procurement policy.
Finding 2022-002
Significant Deficiency 2 CFR ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR ? 200.302 (b) (6) and (7) which requires the Authority to establish written procedures for determining the allowability of costs in accordance with Subpart E - Cost Principles and the terms and conditions of the Federal award and establish written procedures to implement the requirements of ? 305 Payment. Additionally, 2 C.F.R. ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. ? 200.318(a) which states the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Although the Authority did have written standard operating procedures requiring purchase orders, they did not have an approved purchase order or contract on file for 2 of the 50 purchases tested. Failure to have proper controls in place to ensure policies and procedures are being followed could result in unallowable costs and procurement noncompliance. The Authority should follow their written standard operating procedures and implement controls to ensure allowability of costs and procurement in accordance with federal grants.
Finding 2022-001
Material Weakness and Noncompliance 2 C.F.R. ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. ? 200.318(a) which states the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. The Authority?s Procurement Policy states for micro purchases not exceeding $3,000, the purchaser should use a micro purchase order. Although the Authority did have an established Procurement Policy, they did not have purchase orders or contracts on file for 2 of the 50 purchases tested as stated in their policy. Failure to have proper controls in place to ensure the aforementioned policy is being followed could result in the Authority spending more in Federal monies than needed. The Authority should follow their established procurement policy.
Finding 2022-002
Significant Deficiency 2 CFR ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 CFR ? 200.302 (b) (6) and (7) which requires the Authority to establish written procedures for determining the allowability of costs in accordance with Subpart E - Cost Principles and the terms and conditions of the Federal award and establish written procedures to implement the requirements of ? 305 Payment. Additionally, 2 C.F.R. ? 2400.101 gives regulatory effect to the Department of Housing and Urban Development for 2 C.F.R. ? 200.318(a) which states the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in ?? 200.317 through 200.327. Although the Authority did have written standard operating procedures requiring purchase orders, they did not have an approved purchase order or contract on file for 2 of the 50 purchases tested. Failure to have proper controls in place to ensure policies and procedures are being followed could result in unallowable costs and procurement noncompliance. The Authority should follow their written standard operating procedures and implement controls to ensure allowability of costs and procurement in accordance with federal grants.