FAC Explorer

Audit 29511

FY End
2022-03-31
Total Expended
$1.78M
Findings
2
Programs
2
Organization: Housing Authority of City of Borger (TX)
Year: 2022 Accepted: 2022-12-30
Auditor: David A Boring CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33227 2022-001 Material Weakness - L
609669 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $1.05M Yes 1
14.850 Public and Indian Housing $724,016 - 0

Contacts

Name Title Type
HG74NDHEWUG3 Cristi Lajeunesse Auditee
8062742612 David Boring 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 reimbursements. The Authority has elected not to use the 10 percent de minimis cost rate as permitted in UG Section 200 414. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The above schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Authority under of the federal government for the year ended March 31, 2022. The information in the 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 portions of operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

Finding 2022-001
SECTION II ? FINDINGS RELATED TO FINANCIAL STATEMENTS Finding 2022-001 ? Internal Control over Financial Reporting Material Weakness Criteria: The Authority must properly record and report all fixed assets and net fixed assets. Condition: During testing, inquiry, and observation, we noted the Authority changed fee accountants during the year. During the conversion the authority added material fixed assets to the financial statements for assets that had been removed from service and disposed of in the prior year. The authority also inappropriately deleted a material fixed asset that was still in service. Additionally unsubstantiated prior period adjustments were made to fixed assets. The authority did not properly capitalize material purchases of capital equipment during the year. Cause and Effect: The Authority improperly recorded material fixed assets which resulted in the material overstatement of fixed assets and overstatement of maintenance expenses during the year. Recommendation: The Authority needs to work with the fee accountant to ensure the proper recording of fixed assets and expenses. View of Responsible Officials and Planned Corrective Action: We will work with our fee accountant to ensure our that fixed assets and expenses are appropriately recorded. Responsible Official: Cristi Lajeunesse, Executive Director
Finding 2022-001
SECTION II ? FINDINGS RELATED TO FINANCIAL STATEMENTS Finding 2022-001 ? Internal Control over Financial Reporting Material Weakness Criteria: The Authority must properly record and report all fixed assets and net fixed assets. Condition: During testing, inquiry, and observation, we noted the Authority changed fee accountants during the year. During the conversion the authority added material fixed assets to the financial statements for assets that had been removed from service and disposed of in the prior year. The authority also inappropriately deleted a material fixed asset that was still in service. Additionally unsubstantiated prior period adjustments were made to fixed assets. The authority did not properly capitalize material purchases of capital equipment during the year. Cause and Effect: The Authority improperly recorded material fixed assets which resulted in the material overstatement of fixed assets and overstatement of maintenance expenses during the year. Recommendation: The Authority needs to work with the fee accountant to ensure the proper recording of fixed assets and expenses. View of Responsible Officials and Planned Corrective Action: We will work with our fee accountant to ensure our that fixed assets and expenses are appropriately recorded. Responsible Official: Cristi Lajeunesse, Executive Director