FAC Explorer

Audit 296732

FY End
2022-12-31
Total Expended
$7.49M
Findings
4
Programs
8
Organization: Harrisonburg Redevelopment and Housing Authority (VA)
Year: 2022 Accepted: 2024-03-22
Auditor: Dooley & Vicars CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
383705 2022-001 - - L
383706 2022-002 - - L
960147 2022-001 - - L
960148 2022-002 - - L

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $6.06M Yes 2
14.879 Mainstream Vouchers $445,520 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $244,588 - 0
14.218 Community Development Block Grants/entitlement Grants $140,000 - 0
14.267 Continuum of Care Program $112,049 - 0
14.191 Multifamily Housing Service Coordinators $66,939 - 0
14.896 Family Self-Sufficiency Program $57,563 - 0
14.231 Emergency Solutions Grant Program $2,067 - 0

Contacts

Name Title Type
TNVBJGK8ANE5 Christine Halterman Auditee
5404347386 Todd S Vernon Auditor
No contacts on file

Notes to SEFA

Title: Major Programs Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, 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 position, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: Cost rate as approved by HUD budgets. The (*) to the right of a assistance listing number (ALN) identifies the grant as a major federal program as defined by the Uniform Guidance.
Title: Award Balance Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, 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 position, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: Cost rate as approved by HUD budgets. On the Mainstream Vouchers and Moving to Work programs, the Authority receives annual funds based on an annual estimate of need. Unexpended grant funds are available to meet subsequent year HAP shortfalls.
Title: Program Costs Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, 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 position, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: Cost rate as approved by HUD budgets. The amounts shown as current year expenditures represent only the federal portion of the actual program costs. Actual program costs, including the housing Authority's portion, may be more than shown.

Finding Details

Finding 2022-001
Finding No: 2022-001 Relevant Federal Programs: None Condition: The Authority has entered into a master development agreement and ownership with private investors to plan, design, build, and manage a multi-phase, combined housing development. The Authority maintains majority control of the development and the development will be functionally integrated into the operations of the Authority. The Authority failed to correctly apply and classify this investment with the equity method of accounting for investments and classify it as a blended component unit. No Federal funds are involved. Criteria: Generally accepted accounting principles accepted in the United States of America (GAAP) require that investments in legally separate entities be treated as component units. Cause: The Authority development team did not adequately communicate the ownership structure to the finance department. Effect: The Authority did not correctly report the new component unit correctly in draft financial statements. Questions Costs: No questioned costs. Recommendation: The Authority should add additional internal controls to adequately inform the finance department of ongoing development activities for correct classification and inclusion for financial reporting.
Finding 2022-002
Finding No: 2022-002 Program: Moving to Work, ALN 14.881 Compliance Requirement: Reporting (L) Type of Finding: Noncompliance; Significant Deficiency Condition: During 2022, the Authority implemented an accounting system change to upgrade from a legacy accounting system. During the new system implementation, the software provided made hard coding errors in mapping several of the Authority’s program ledgers. This resulted in the Authority being unable to close the books correctly and in a timely manner and submit the completed audit package to the Federal Audit Clearinghouse by the statutory deadline. Criteria: All entities receiving Federal funding in excess of $750,000 must submit all required data elements required by the Office of Management and Budget (OMB) to the Federal Audit Clearinghouse by no later than nine months following the entity’s year end. Cause: The Authority implemented a new accounting system with an industry leading software provider and the provider incorrectly implemented the system for several program ledgers. Effect: The Authority was unable to submit the required data collection form and audit by the required deadline. Questioned Costs: No questioned costs. Recommendation: No recommendation. The Authority implemented a new accounting system with an industry leading software provider and the provider incorrectly implemented the system for several program ledgers. The Authority and software provider worked for several months collectively to restate errors in several of the Authority’s program ledgers. The system implementation has been corrected by the solution provider and all ledgers corrected. Upon completion of this the Authority intends to immediately submit all required data components.
Finding 2022-001
Finding No: 2022-001 Relevant Federal Programs: None Condition: The Authority has entered into a master development agreement and ownership with private investors to plan, design, build, and manage a multi-phase, combined housing development. The Authority maintains majority control of the development and the development will be functionally integrated into the operations of the Authority. The Authority failed to correctly apply and classify this investment with the equity method of accounting for investments and classify it as a blended component unit. No Federal funds are involved. Criteria: Generally accepted accounting principles accepted in the United States of America (GAAP) require that investments in legally separate entities be treated as component units. Cause: The Authority development team did not adequately communicate the ownership structure to the finance department. Effect: The Authority did not correctly report the new component unit correctly in draft financial statements. Questions Costs: No questioned costs. Recommendation: The Authority should add additional internal controls to adequately inform the finance department of ongoing development activities for correct classification and inclusion for financial reporting.
Finding 2022-002
Finding No: 2022-002 Program: Moving to Work, ALN 14.881 Compliance Requirement: Reporting (L) Type of Finding: Noncompliance; Significant Deficiency Condition: During 2022, the Authority implemented an accounting system change to upgrade from a legacy accounting system. During the new system implementation, the software provided made hard coding errors in mapping several of the Authority’s program ledgers. This resulted in the Authority being unable to close the books correctly and in a timely manner and submit the completed audit package to the Federal Audit Clearinghouse by the statutory deadline. Criteria: All entities receiving Federal funding in excess of $750,000 must submit all required data elements required by the Office of Management and Budget (OMB) to the Federal Audit Clearinghouse by no later than nine months following the entity’s year end. Cause: The Authority implemented a new accounting system with an industry leading software provider and the provider incorrectly implemented the system for several program ledgers. Effect: The Authority was unable to submit the required data collection form and audit by the required deadline. Questioned Costs: No questioned costs. Recommendation: No recommendation. The Authority implemented a new accounting system with an industry leading software provider and the provider incorrectly implemented the system for several program ledgers. The Authority and software provider worked for several months collectively to restate errors in several of the Authority’s program ledgers. The system implementation has been corrected by the solution provider and all ledgers corrected. Upon completion of this the Authority intends to immediately submit all required data components.