FAC Explorer

Audit 300217

FY End
2023-06-30
Total Expended
$38.21M
Findings
12
Programs
3
Organization: Dupage Housing Authority (IL)
Year: 2023 Accepted: 2024-03-29
Auditor: Rubino & Company Chartered

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
388511 2023-002 Significant Deficiency - L
388512 2023-003 Significant Deficiency - B
388513 2023-002 Significant Deficiency - L
388514 2023-003 Significant Deficiency - B
388515 2023-002 Significant Deficiency - L
388516 2023-003 Significant Deficiency - B
964953 2023-002 Significant Deficiency - L
964954 2023-003 Significant Deficiency - B
964955 2023-002 Significant Deficiency - L
964956 2023-003 Significant Deficiency - B
964957 2023-002 Significant Deficiency - L
964958 2023-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
14.879 Mainstream Vouchers $1.04M Yes 2
14.871 Section 8 Housing Choice Vouchers $813,935 Yes 2
14.896 Family Self-Sufficiency Program $183,593 - 0

Contacts

Name Title Type
GXVSPWKKHU43 Cheron Corbett Auditee
6305938231 Allan Kitchen Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1. BASIS OF PRESENTATION Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 4. INDIRECT COST RATE The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the DuPage Housing Authority (the Authority) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: NOTE 3. SUBRECIPIENTS Accounting Policies: NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: NOTE 4. INDIRECT COST RATE The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority did not pass through any federal awards to subrecipients during the year ended June 30, 2023.

Finding Details

Finding 2023-002
Finding 2023-002: Late Submission of Unaudited Data to REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 902.33, the Authority is required to submit its unaudited Financial Data Schedule (FDS) no later than 60 days after the PHA’s fiscal year end. If the FDS submission is rejected by HUD, the Authority is required to re-submit its unaudited FDS within 15 days of the rejection date. Condition: The Authority did not re-submit its unaudited financial data to the REAC by the required due date. Context: PHAs are required to submit an unaudited FDS to REAC within 2 months of fiscal year end and re-submit within 15 days in the event HUD rejects the submission. Effect: The Authority did not re-submit its unaudited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the unaudited FDS is submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003
Finding 2023-003: Overpayments to Landlords (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Allowable Costs Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority made a second $3 million disbursement of payments to landlords during June 2023. Context: Payments to landlords during the beginning of June 2023 amounted to approximately $3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments were recovered in November 2023. Effect: The Authority spent an additional $3.4 million on HAP during June 2023. Cause: The financial reporting system disbursed an additional set of landlord payments during June 2023. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that duplicate payments of HAP to landlords are not made. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Unaudited Data to REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 902.33, the Authority is required to submit its unaudited Financial Data Schedule (FDS) no later than 60 days after the PHA’s fiscal year end. If the FDS submission is rejected by HUD, the Authority is required to re-submit its unaudited FDS within 15 days of the rejection date. Condition: The Authority did not re-submit its unaudited financial data to the REAC by the required due date. Context: PHAs are required to submit an unaudited FDS to REAC within 2 months of fiscal year end and re-submit within 15 days in the event HUD rejects the submission. Effect: The Authority did not re-submit its unaudited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the unaudited FDS is submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003
Finding 2023-003: Overpayments to Landlords (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Allowable Costs Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority made a second $3 million disbursement of payments to landlords during June 2023. Context: Payments to landlords during the beginning of June 2023 amounted to approximately $3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments were recovered in November 2023. Effect: The Authority spent an additional $3.4 million on HAP during June 2023. Cause: The financial reporting system disbursed an additional set of landlord payments during June 2023. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that duplicate payments of HAP to landlords are not made. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Unaudited Data to REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 902.33, the Authority is required to submit its unaudited Financial Data Schedule (FDS) no later than 60 days after the PHA’s fiscal year end. If the FDS submission is rejected by HUD, the Authority is required to re-submit its unaudited FDS within 15 days of the rejection date. Condition: The Authority did not re-submit its unaudited financial data to the REAC by the required due date. Context: PHAs are required to submit an unaudited FDS to REAC within 2 months of fiscal year end and re-submit within 15 days in the event HUD rejects the submission. Effect: The Authority did not re-submit its unaudited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the unaudited FDS is submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003
Finding 2023-003: Overpayments to Landlords (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Allowable Costs Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority made a second $3 million disbursement of payments to landlords during June 2023. Context: Payments to landlords during the beginning of June 2023 amounted to approximately $3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments were recovered in November 2023. Effect: The Authority spent an additional $3.4 million on HAP during June 2023. Cause: The financial reporting system disbursed an additional set of landlord payments during June 2023. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that duplicate payments of HAP to landlords are not made. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Unaudited Data to REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 902.33, the Authority is required to submit its unaudited Financial Data Schedule (FDS) no later than 60 days after the PHA’s fiscal year end. If the FDS submission is rejected by HUD, the Authority is required to re-submit its unaudited FDS within 15 days of the rejection date. Condition: The Authority did not re-submit its unaudited financial data to the REAC by the required due date. Context: PHAs are required to submit an unaudited FDS to REAC within 2 months of fiscal year end and re-submit within 15 days in the event HUD rejects the submission. Effect: The Authority did not re-submit its unaudited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the unaudited FDS is submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003
Finding 2023-003: Overpayments to Landlords (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Allowable Costs Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority made a second $3 million disbursement of payments to landlords during June 2023. Context: Payments to landlords during the beginning of June 2023 amounted to approximately $3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments were recovered in November 2023. Effect: The Authority spent an additional $3.4 million on HAP during June 2023. Cause: The financial reporting system disbursed an additional set of landlord payments during June 2023. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that duplicate payments of HAP to landlords are not made. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Unaudited Data to REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 902.33, the Authority is required to submit its unaudited Financial Data Schedule (FDS) no later than 60 days after the PHA’s fiscal year end. If the FDS submission is rejected by HUD, the Authority is required to re-submit its unaudited FDS within 15 days of the rejection date. Condition: The Authority did not re-submit its unaudited financial data to the REAC by the required due date. Context: PHAs are required to submit an unaudited FDS to REAC within 2 months of fiscal year end and re-submit within 15 days in the event HUD rejects the submission. Effect: The Authority did not re-submit its unaudited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the unaudited FDS is submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003
Finding 2023-003: Overpayments to Landlords (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Allowable Costs Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority made a second $3 million disbursement of payments to landlords during June 2023. Context: Payments to landlords during the beginning of June 2023 amounted to approximately $3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments were recovered in November 2023. Effect: The Authority spent an additional $3.4 million on HAP during June 2023. Cause: The financial reporting system disbursed an additional set of landlord payments during June 2023. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that duplicate payments of HAP to landlords are not made. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-002
Finding 2023-002: Late Submission of Unaudited Data to REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 902.33, the Authority is required to submit its unaudited Financial Data Schedule (FDS) no later than 60 days after the PHA’s fiscal year end. If the FDS submission is rejected by HUD, the Authority is required to re-submit its unaudited FDS within 15 days of the rejection date. Condition: The Authority did not re-submit its unaudited financial data to the REAC by the required due date. Context: PHAs are required to submit an unaudited FDS to REAC within 2 months of fiscal year end and re-submit within 15 days in the event HUD rejects the submission. Effect: The Authority did not re-submit its unaudited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the unaudited FDS is submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2023-003
Finding 2023-003: Overpayments to Landlords (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Allowable Costs Criteria: Per 24 CFR Section 982, PHAs must determine that rent paid to an owner is reasonable at the time of initial leasing and during the term of the contract. Condition: The Authority made a second $3 million disbursement of payments to landlords during June 2023. Context: Payments to landlords during the beginning of June 2023 amounted to approximately $3.4 million. Around June 15, 2023, an additional $3.4 million was disbursed. The overpayments were recovered in November 2023. Effect: The Authority spent an additional $3.4 million on HAP during June 2023. Cause: The financial reporting system disbursed an additional set of landlord payments during June 2023. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure that duplicate payments of HAP to landlords are not made. Views of Responsible Officials: The Authority agrees with the finding.