Audit 292158

FY End
2022-03-31
Total Expended
$26.76M
Findings
2
Programs
12
Organization: Wilmington Housing Authority (NC)
Year: 2022 Accepted: 2024-02-26
Auditor: Tpo CPA PLLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
370516 2022-003 Material Weakness Yes L
946958 2022-003 Material Weakness Yes L

Contacts

Name Title Type
L65NFKB959Z4 Kinteh Darboe Auditee
9103417700 T. Peter Oke-Bello Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Summary of Significant Accounting Policies. Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. The Authority’s accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB.
Title: Notes 2 and 3: Cash and cash equivalent Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of cash balances at March 31, 2022.
Title: Note 4: Accounts Receivable - Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of accounts receivable at March 31, 2022.
Title: Note 5: Notes and Mortgages receivable Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of Notes and Mortgages balances at March 31, 2022.
Title: Note 6: Due to (From) Other Program Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of Due to (From) other programs at March 31, 2022.
Title: Note 7: Capital Assets Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of capital assets and depreciation at March 31, 2022.
Title: Note 8: Unearned Revenues Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. The Authority entered into three ground lease agreements as the lessor with several Corporations that have constructed rental home projects. The ground leases called for prepaid rent which is being amortized using the straight-line basis over 99 years, the life of the leases, which also requires additional payments of $1 per year. The initial rents were paid in the form of a promissory note secured by a deed of trust. See Note 5. A summary of the deferred revenue at March 31, 2022 is as follows:
Title: Note 9: Long-Term Debt Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of Long-term debt at March 31, 2022.
Title: Note 10: Long-Term Debt Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Changes in long-term liabilities for the year ended March 31, 2022,
Title: Note 11: Defined Benefit Pension Plan Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of Pension contributions and expenses disclosures.
Title: Note 12: Related Parties Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary of Related parties.
Title: Note 13: Conduit Debt Obligation Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Conduit (no-commitment) debt obligations are certain limited-obligation revenue bonds, certificates of participation, or similar debt instruments issued by a state or local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer’s financial reporting entity. Although conduit debt obligations bear the name of the governmental issuer, the issuer has no obligation for such debt beyond the resources provided by a lease or loan with the third party on whose behalf they are issued and is therefore not reported on the balance sheet.
Title: Note 14: Risk Management Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Summary and Analysis of Risk Management
Title: Note 15: Contingencies Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. The Authority is involved in various legal proceedings and litigation arising in the normal course of business. Management does not believe that the settlement of any such claims or litigation will have a material adverse effect on the Authority’s financial position or results of operations.
Title: Note 16: Economic Dependency Accounting Policies: The Authority's accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. De Minimis Rate Used: N Rate Explanation: The Authority elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Both the Authority’s Low Income Public Housing Program and the Housing Choice Voucher Program are economically dependent on annual contributions and grants from HUD. Both programs operated at a loss prior to receiving the contributions and grants.

Finding Details

Condition: Prior audits noted material weaknesses in internal controls over compliance with applicable HUD eligibility, recertification process, and other instances where the Authority did not follow their internal controls designed to ensure compliance with Housing Quality Standards (HQS) requirements.
Condition: Prior audits noted material weaknesses in internal controls over compliance with applicable HUD eligibility, recertification process, and other instances where the Authority did not follow their internal controls designed to ensure compliance with Housing Quality Standards (HQS) requirements.