FAC Explorer

Audit 295388

FY End
2021-12-31
Total Expended
$1.38M
Findings
24
Programs
5
Organization: Housing Commission of Talbot (MD)
Year: 2021 Accepted: 2024-03-15
Auditor: Sb & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380614 2021-001 Material Weakness Yes L
380615 2021-002 - - P
380616 2021-003 - Yes P
380617 2021-001 Material Weakness Yes L
380618 2021-002 - - P
380619 2021-003 - Yes P
380620 2021-001 Material Weakness Yes L
380621 2021-002 - - P
380622 2021-001 Material Weakness Yes L
380623 2021-002 - - P
380624 2021-001 Material Weakness Yes L
380625 2021-002 - - P
957056 2021-001 Material Weakness Yes L
957057 2021-002 - - P
957058 2021-003 - Yes P
957059 2021-001 Material Weakness Yes L
957060 2021-002 - - P
957061 2021-003 - Yes P
957062 2021-001 Material Weakness Yes L
957063 2021-002 - - P
957064 2021-001 Material Weakness Yes L
957065 2021-002 - - P
957066 2021-001 Material Weakness Yes L
957067 2021-002 - - P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.00M Yes 3
14.872 Public Housing Capital Fund $189,935 - 2
14.850 Public and Indian Housing $174,649 - 2
14.850 Covid 19 Public and Indian Housing $10,524 - 2
14.871 Covid 19 Section 8 Housing Choice Vouchers $2,724 Yes 3

Contacts

Name Title Type
UKKHV7GT7U27 Don Bibb Auditee
4108225358 Christopher Lehman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: All Federal grant operations of the Housing Commission of Talbot (the “Commission”) are included in the scope of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major grant program noted below. The programs on the Schedule of Expenditures of Federal Awards (the Schedule) represent all Federal award programs and other grants with fiscal year 2021 cash or non-cash expenditure activities. For our single audit testing, we tested the Federal award program below with fiscal year 2021 cash and non-cash expenditures to ensure coverage of at least 40% of Federally granted funds. Our actual coverage was 73%.Expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule includes the Federal award activity of the Commission under programs of the Federal government for the year ended December 31, 2021, and is reported on the modified accrual basis of accounting. The information in the Schedule is presented in accordance with Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Commission.

Finding Details

Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-003
Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HDU in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Commission could not provide depositor agreements with financial institutions holding Federal funds for the Commission. Questioned Costs None. Cause The Commission does not have depositor agreements with financial institutions holding Federal funds for the Commission. Effect The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Recommendation The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-003
Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HDU in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Commission could not provide depositor agreements with financial institutions holding Federal funds for the Commission. Questioned Costs None. Cause The Commission does not have depositor agreements with financial institutions holding Federal funds for the Commission. Effect The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Recommendation The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-003
Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HDU in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Commission could not provide depositor agreements with financial institutions holding Federal funds for the Commission. Questioned Costs None. Cause The Commission does not have depositor agreements with financial institutions holding Federal funds for the Commission. Effect The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Recommendation The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-003
Criteria Public Housing Authorities are required to enter into depository agreements with their financial institutions using the HUD-519999 or a form required by HDU in the ACC. The agreements serve as safeguards for Federal funds a provide third-party rights to HUD. Condition The Commission could not provide depositor agreements with financial institutions holding Federal funds for the Commission. Questioned Costs None. Cause The Commission does not have depositor agreements with financial institutions holding Federal funds for the Commission. Effect The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission. Recommendation The Commission should enter into depository agreements with all financial institutions holding Federal funds for the Commission.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.
Finding 2021-001
Criteria The Commission must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Commission must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Commission. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.
Finding 2021-002
Criteria It is the auditee’s responsibility to ensure that the Data Collection Form and Financial Data Schedule (FDS) are submitted timely and accurately. The due date for the data collection form is the earlier of 30 days after receipt of the audit report or nine months after the Commission’s year-end, and the due date for the FDS submission is nine months after the Commission’s yearend. Condition The Data Collection Form for the year ended December 31, 2021, was due for submission to the Federal Audit Clearing House by September 30, 2022 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2021 was due for submission to HUD by the deadline of September 30, 2022 and was not submitted by that date. Questioned Costs None. Cause The Commission has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used to complete the Data Collection Form and FDS. Effect Because of the late submission of the audit reports, the reporting package and FDS was not made available to users in a timely manner. Recommendation We recommended that the Commission develop procedures to ensure that future reporting packages and FDS reports are submitted by the respective deadlines.