Audit 295389

FY End
2022-12-31
Total Expended
$1.54M
Findings
20
Programs
4
Organization: Housing Commission of Talbot (MD)
Year: 2022 Accepted: 2024-03-15
Auditor: Sb & Company LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
380626 2022-001 Material Weakness Yes L
380627 2022-002 - Yes P
380628 2022-003 - Yes P
380629 2022-001 Material Weakness Yes L
380630 2022-002 - Yes P
380631 2022-003 - Yes P
380632 2022-001 Material Weakness Yes L
380633 2022-002 - Yes P
380634 2022-001 Material Weakness Yes L
380635 2022-002 - Yes P
957068 2022-001 Material Weakness Yes L
957069 2022-002 - Yes P
957070 2022-003 - Yes P
957071 2022-001 Material Weakness Yes L
957072 2022-002 - Yes P
957073 2022-003 - Yes P
957074 2022-001 Material Weakness Yes L
957075 2022-002 - Yes P
957076 2022-001 Material Weakness Yes L
957077 2022-002 - Yes P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.18M Yes 3
14.872 Public Housing Capital Fund $216,245 - 2
14.850 Public and Indian Housing $114,839 - 2
14.871 Covid 19 - Section 8 Housing Choice Vouchers $21,113 Yes 3

Contacts

Name Title Type
UKKHV7GT7U27 Shawn Hardnett Auditee
2028302810 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 2022 cash or non-cash expenditure activities. For our single audit testing, we tested the Federal award program below with fiscal year 2022 cash and non-cash expenditures to ensure coverage of at least 40% of Federally granted funds. Our actual coverage was 78%. 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, 2022, 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

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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.
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.
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 yearend, and the due date for the FDS submission is nine months after the Commission’s year-end. Condition The Data Collection Form for the year ended December 31, 2022, was due for submission to the Federal Audit Clearing House by September 30, 2023 (nine months after the Commission yearend) and was not submitted by that date. Additionally, the FDS submission for the year ended December 31, 2022 was due for submission to HUD by the deadline of September 30, 2023 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.