FAC Explorer

Audit 301280

FY End
2023-06-30
Total Expended
$6.24M
Findings
2
Programs
5
Organization: Mission Housing Authority (TX)
Year: 2023 Accepted: 2024-03-30
Auditor: John A Blakeway CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390524 2023-001 - - A
966966 2023-001 - - A

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $1.19M - 0
14.850 Public and Indian Housing $932,809 - 1
14.870 Resident Opportunity and Supportive Services - Service Coordinators $43,950 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $23,837 - 0
14.871 Section 8 Housing Choice Vouchers $7,568 Yes 0

Contacts

Name Title Type
JJLQRVKGFUS6 Arnold Padilla Auditee
9565859747 John A. Blakeway Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Note B - Significant Accounting Policies. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contined in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The PHA's summary of significant accounting policies is presented in Note A in the PHA's basis financial statements. The PHA has not elected to use the 10% de minimis cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Auditee did not use 10% de minimus cost rate. Refer to Row 5. The accompanying Schedule of Federal Awards (the Schedule) includes the federal award activity of the PHA under programs of the federl government for the year ended June 30, 2023. The information in this Schedule 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 opertions of the PHA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the PHA.

Finding Details

Finding 2023-001
2023-001 - Public and Indian Housing - ALN No. 14.850 Criteria or Specific Requirement: HUD requies PHA's to timely follow its eviction and workout agreement policies. Condition: The PHA didn't timely follow its eviction and workout agreement policies. Cause: Unknown. Effect: The majority of the PHA's tenants failed to timely pay their monthly rental amounts. As a result, the year-end tenant accounts receivable balance increased to $528,266 (67% of tenant rental revenue). Bad debt expense caused mainly from increasing the allowance for doubtful accounts was $445,641 (56% of tenant rental revenue). Questioned Costs: $445,641 in bad debt expense. Repeat Finding: Not a repeat finding. Recommendation: The PHA should timely enforce its eviction and workout agreement policies. Response: The PHA is currently addressing outstanding Account Tenant Receivables in the following manner: We are contacting the families in sequence of the largest outstanding debt to lesser, these families are provided with an option to settle the debt via a Payment Agreement. The Agreement details total amount owed, a requirement of an initial down payment of 5% of the outstanding amount, the remainder is scheduled at a value of 10% of the families monthly adjusted income until full payment. Many families have abandoned their units upon completing these initial interviews, for these we will place their outstanding debt on HUD EIV module, and will be soliciting a collection agency contract for efforts to collect outstanding debt.
Finding 2023-001
2023-001 - Public and Indian Housing - ALN No. 14.850 Criteria or Specific Requirement: HUD requies PHA's to timely follow its eviction and workout agreement policies. Condition: The PHA didn't timely follow its eviction and workout agreement policies. Cause: Unknown. Effect: The majority of the PHA's tenants failed to timely pay their monthly rental amounts. As a result, the year-end tenant accounts receivable balance increased to $528,266 (67% of tenant rental revenue). Bad debt expense caused mainly from increasing the allowance for doubtful accounts was $445,641 (56% of tenant rental revenue). Questioned Costs: $445,641 in bad debt expense. Repeat Finding: Not a repeat finding. Recommendation: The PHA should timely enforce its eviction and workout agreement policies. Response: The PHA is currently addressing outstanding Account Tenant Receivables in the following manner: We are contacting the families in sequence of the largest outstanding debt to lesser, these families are provided with an option to settle the debt via a Payment Agreement. The Agreement details total amount owed, a requirement of an initial down payment of 5% of the outstanding amount, the remainder is scheduled at a value of 10% of the families monthly adjusted income until full payment. Many families have abandoned their units upon completing these initial interviews, for these we will place their outstanding debt on HUD EIV module, and will be soliciting a collection agency contract for efforts to collect outstanding debt.