Audit 299469

FY End
2023-06-30
Total Expended
$3.22B
Findings
4
Programs
22
Year: 2023 Accepted: 2024-03-28
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
387195 2023-001 Significant Deficiency - L
387196 2023-001 Significant Deficiency - L
963637 2023-001 Significant Deficiency - L
963638 2023-001 Significant Deficiency - L

Contacts

Name Title Type
TVJKJRL3RSK9 Wayne Millward Auditee
2083314758 Kevin Smith Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Association’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Idaho Housing and Finance Association (the Association) under programs of the federal government for the year ended June 30, 2023. The information 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 portion of the operations of the Association, it is not intended to and does not present the financial position, changes in net position, or cash flows of Idaho Housing and Finance Association.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Association’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the 10% de minimis cost rate. Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Association’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. The Association has not elected to use the 10% de minimis cost rate.
Title: Note 3 - Subrecipients Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Association’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the 10% de minimis cost rate. The Association provides grant funds through various subrecipients in the State of Idaho. Federal financial assistance provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient. The Association has certain compliance responsibilities with respect to its subrecipients, including monitoring the subrecipients to help ensure they use the sub‐awards as authorized by law, regulations, and the provisions of the grant agreements.
Title: Note 4 - Major Programs Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Association’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the 10% de minimis cost rate. The following programs represent all Federal awards tested as major programs. Since the Association is a high‐risk auditee, coverage of at least 40 percent of federally awarded funds was required. Actual coverage was approximately 93 percent of total federally awarded expenditures.
Title: Note 5 - Coronavirus Relief Fund (CARES ACT) Accounting Policies: Expenditures reported on this schedule are presented using the accrual basis of accounting as described in Note 2 to the Association’s basic financial statements except for subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Association has not elected to use the 10% de minimis cost rate. The Coronavirus Relief Fund (CARES Act) expenditures are listed on the schedule on separate lines. These funds were used in several different programs, including the Emergency Solutions Grants program, Housing Choice Voucher program, Mainstream 5‐year program, Emergency Rental Assistance program, and Homeownership Assistance Fund (FFAL 14.231CV, 14.HCC, 14.MSC, 21.023, 21.026).

Finding Details

2023‐001 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.195 and #14.182 Section 8 Housing Assistance Payments Program and Section 8 New Construction and Substantial Rehabilitation Reporting Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 60 waitlist applicants for the Project Based Section 8 program, there was one instance where the required documentation for the applicant was not available by the property manager. Cause: The documentation was not filed or retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 out of a population greater than 250 waitlist applicants were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.
2023‐001 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.195 and #14.182 Section 8 Housing Assistance Payments Program and Section 8 New Construction and Substantial Rehabilitation Reporting Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 60 waitlist applicants for the Project Based Section 8 program, there was one instance where the required documentation for the applicant was not available by the property manager. Cause: The documentation was not filed or retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 out of a population greater than 250 waitlist applicants were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.
2023‐001 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.195 and #14.182 Section 8 Housing Assistance Payments Program and Section 8 New Construction and Substantial Rehabilitation Reporting Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 60 waitlist applicants for the Project Based Section 8 program, there was one instance where the required documentation for the applicant was not available by the property manager. Cause: The documentation was not filed or retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 out of a population greater than 250 waitlist applicants were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.
2023‐001 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.195 and #14.182 Section 8 Housing Assistance Payments Program and Section 8 New Construction and Substantial Rehabilitation Reporting Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 60 waitlist applicants for the Project Based Section 8 program, there was one instance where the required documentation for the applicant was not available by the property manager. Cause: The documentation was not filed or retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 out of a population greater than 250 waitlist applicants were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.