FAC Explorer

Audit 293932

FY End
2023-06-30
Total Expended
$35.39M
Findings
2
Programs
6
Organization: Lexington-Fayette Urban County Housing Authority (KY)
Year: 2023 Accepted: 2024-03-07
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
374343 2023-001 Significant Deficiency - E
950785 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $23.99M Yes 0
14.879 Mainstream Vouchers $1.00M Yes 0
14.871 Section 8 Housing Choice Vouchers $872,910 Yes 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $175,448 - 0
14.238 Shelter Plus Care $167,319 - 0
14.850 Public and Indian Housing $33,705 - 0

Contacts

Name Title Type
LJFJXL5TKP23 Sean Cooper Auditee
8592815031 Dale R. Rector Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Authority under programs of the federal government for the year ended June 30, 2023. 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 the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
Title: SUBRECIPIENTS Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority provided no federal awards to subrecipients during the fiscal year ending June 30, 2023.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Lexington-Fayette Urban County Housing Authority received no federal awards of non-monetary assistance that are required to be disclosed for the year ended June 30, 2023. The Lexington-Fayette Urban County Housing Authority had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended June 30, 2023. The Lexington-Fayette Urban County Housing Authority maintains the following limits of insurance as of June 30, 2023: Property $ 100,000,000 Liability $ 2,000,000 Commercial Auto $ 2,000,000 Worker Compensation Statutory Directors of Officers Liability $ 2,000,000 Public Employee Dishonesty $ 500,000 Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2023-001
Finding 2023-001 – Moving To Work Demonstration Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Moving To Work Demonstration - subsidy ALN 14.881 Condition & Cause: Our review of two hundred (200) Moving To Work tenant files revealed that there were thirteen (13) annual recertifications completed late, one (1) annual recertification that was not completed, and one (1) miscalculation of annual income, which represents 7.5% of the total files examined. We noted that the Agency experienced difficulty in hiring and retaining staff and operated with several employee vacancies throughout the fiscal year. Based upon this control deficiency encountered with our sample, we believe the Housing Authority has a significant deficiency in this area of compliance. Criteria: The Code of Federal regulations, the Housing Authority’s ACOP, Admin Plan, MTW Plan, and specific HUD guidelines in documenting and maintaining the Public Housing and Housing Choice Voucher tenant files. Recommendation: We recommend that the Agency identify the annual recertifications that are past or near due and complete these reexaminations. We also recommend that the Agency increase their monitoring and review of the Moving To Work files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2023-001
Finding 2023-001 – Moving To Work Demonstration Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Moving To Work Demonstration - subsidy ALN 14.881 Condition & Cause: Our review of two hundred (200) Moving To Work tenant files revealed that there were thirteen (13) annual recertifications completed late, one (1) annual recertification that was not completed, and one (1) miscalculation of annual income, which represents 7.5% of the total files examined. We noted that the Agency experienced difficulty in hiring and retaining staff and operated with several employee vacancies throughout the fiscal year. Based upon this control deficiency encountered with our sample, we believe the Housing Authority has a significant deficiency in this area of compliance. Criteria: The Code of Federal regulations, the Housing Authority’s ACOP, Admin Plan, MTW Plan, and specific HUD guidelines in documenting and maintaining the Public Housing and Housing Choice Voucher tenant files. Recommendation: We recommend that the Agency identify the annual recertifications that are past or near due and complete these reexaminations. We also recommend that the Agency increase their monitoring and review of the Moving To Work files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.