Audit 29784

FY End

2022-12-31

Total Expended

$4.04M

Findings

2

Programs

2

Organization: Springfield Housing Authority (TN)

Year: 2022 Accepted: 2023-06-08

Auditor: Smith Marion and Company

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
38149	2022-001	Significant Deficiency	-	C
614591	2022-001	Significant Deficiency	-	C

ALN	Program	Spent	Major	Findings
14.872	Public Housing Capital Fund	$2.20M	-	1
14.850	Public and Indian Housing	$1.85M	Yes	0

Contacts

Name	Title	Type
KBRRPD5EKND4	Brandi Claborn	Auditee
6153844591	Chad Porter	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Scope of PresentationThe accompanying schedule presents the expenditures incurred (and related awards received) by the Springfield Housing Authority that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.Basis of AccountingThe expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001

Criteria: The U.S. Department of Housing and Urban Development Capital Fund Guidebook 2016 states that the PHA can draw funds up to, but not more than, 3 days in advance of a valid expense and should draw the amount needed to cover such costs. Condition: The PHA did not spend CFP money that was drawn down within the 3 day window. Context: We noted that the PHA has deferred CFP revenue account of $43,722, which indicates that the CFP money drawn down from the 2022 CFP year had not yet been spent. Cause: The PHA had a lack of proper internal control procedures surrounding the cash management of the CFP program. Effect: The lack of controls surrounding the cash management caused the PHA to have unspent CFP money at year end. Recommendations: Establish proper CFP procedures to ensure proper handling of CFP draw downs. Management Views: Agrees with auditor finding.

Finding 2022-001

Criteria: The U.S. Department of Housing and Urban Development Capital Fund Guidebook 2016 states that the PHA can draw funds up to, but not more than, 3 days in advance of a valid expense and should draw the amount needed to cover such costs. Condition: The PHA did not spend CFP money that was drawn down within the 3 day window. Context: We noted that the PHA has deferred CFP revenue account of $43,722, which indicates that the CFP money drawn down from the 2022 CFP year had not yet been spent. Cause: The PHA had a lack of proper internal control procedures surrounding the cash management of the CFP program. Effect: The lack of controls surrounding the cash management caused the PHA to have unspent CFP money at year end. Recommendations: Establish proper CFP procedures to ensure proper handling of CFP draw downs. Management Views: Agrees with auditor finding.