FAC Explorer

Audit 282246

FY End
2022-06-30
Total Expended
$1.47M
Findings
6
Programs
8
Organization: City of South Tucson (AZ)
Year: 2022 Accepted: 2023-03-30
Auditor: Fester & Chapman PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
307919 2022-101 Material Weakness - E
307920 2022-101 Material Weakness - E
307921 2022-102 Material Weakness - E
884361 2022-101 Material Weakness - E
884362 2022-101 Material Weakness - E
884363 2022-102 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $256,532 - 0
14.872 Public Housing Capital Fund $131,177 - 0
14.871 Section 8 Housing Choice Vouchers $131,177 Yes 1
16.U01 Organized Crime Drug Enforcement Task Force $73,324 - 0
66.815 Environmental Workforce Development and Job Training Cooperative Agreements $30,720 - 0
97.067 Homeland Security Grant Program $13,425 - 0
16.922 Equitable Sharing Program $3,400 - 0
14.850 Public and Indian Housing $560 Yes 1

Contacts

Name Title Type
V35YJGS4W9Y1 Lourdes Aguirre Auditee
5207922424 Ben Hur Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Accounting Policies: The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of the City of South Tucson, Arizona for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR ?200.414.8 Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, where incertain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: FEDERAL ASSISTANCE LISTINGS NUMBER Accounting Policies: The accompanying schedule of expenditures of federal awards (schedule) includes the federal grant activity of the City of South Tucson, Arizona for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. De Minimis Rate Used: N Rate Explanation: The City did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR ?200.414.8 The program titles and Federal Assistance Listings numbers were obtained from the federal or passthrough grantor or the 2022 Federal Assistance Listings. When no Federal Assistance Listings number had been assigned to a program, the two digit federal agency identifier and the federal contract number were used. When there was no federal contract number, the two-digit federal agency identifier and the word unknown were used.

Finding Details

Finding 2022-101
Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2022-101
Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2022-102
Assistance Listing number and name 14.871 - Section 8 Housing Choice Vouchers Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination
Finding 2022-101
Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2022-101
Assistance Listing number and name 14.850 - Public and Indian Housing Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determiniations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2022-102
Assistance Listing number and name 14.871 - Section 8 Housing Choice Vouchers Federal Agency: U.S Department of Housing and Urban Development Compliance Requirement: Eligbility Questioned Costs: Unknown Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The South Tucson Housing Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The South Tucson Housing Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the South Tucson Housing Authority may not detect or correct in a timely manner. Recommendation: The South Tucson Housing Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination