FAC Explorer

Audit 299931

FY End
2023-06-30
Total Expended
$1.47M
Findings
2
Programs
2
Organization: Elizabeth City Housing Authority (NC)
Year: 2023 Accepted: 2024-03-28
Auditor: Gregory T Redman CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388093 2023-001 Significant Deficiency - E
964535 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $1.05M Yes 1
14.872 Public Housing Capital Fund $420,541 - 0

Contacts

Name Title Type
DN7SNH4F74U7 Sandra Perry Auditee
2523355411 Greg Redman Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Elizabeth City Housing Authority under the programs of the federal government for the year ended June 30, 2023. The information in the SEFA 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 and the State Single Audit Implementation Act. Because the Schedules presents only a selected portion of the operations of Elizabeth City Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Elizabeth City Housing Authority. Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect costs incurred.

Finding Details

Finding 2023-001
Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of HUD Federal program: Public and Indian Housing ALN#: 14.850 Award Period: 07/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 880 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: • 1 file did not contain evidence of income verification for the audit period. • 1 file did not contain all required Section 214 documentation for verification of U.S Citizenship. Cause: The Authority did not obtain all required documentation during the intake procedures. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.
Finding 2023-001
Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of HUD Federal program: Public and Indian Housing ALN#: 14.850 Award Period: 07/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 880 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: • 1 file did not contain evidence of income verification for the audit period. • 1 file did not contain all required Section 214 documentation for verification of U.S Citizenship. Cause: The Authority did not obtain all required documentation during the intake procedures. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.