FAC Explorer

Audit 306825

FY End
2023-09-30
Total Expended
$1.02M
Findings
2
Programs
1
Organization: Warren County Housing Authority (IA)
Year: 2023 Accepted: 2024-05-21
Auditor: Denman CPA LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398100 2023-002 Significant Deficiency Yes P
974542 2023-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.02M Yes 1

Contacts

Name Title Type
E6KGNUF1AKS5 Jessica Howe Auditee
5159611073 Robert Endriss Auditor
No contacts on file

Notes to SEFA

Title: NOTE A—BASIS OF PRESENTATION Accounting Policies: NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not 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 Authority under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 financial position, or cash flows of the Authority.

Finding Details

Finding 2023-002
Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Authority does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas. 1) Cash receipts – detailed recordkeeping, custody, reconciling, and posting to the general ledger. 2) Disbursements – check preparation including payroll, and posting to and maintaining the general ledger. 3) Federal compliance requirements – eligibility determinations, special tests and provisions, and reporting. Cause The Authority does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions and compliance determinations without adequate checks and balances or reviews being implemented. Recommendations Resolving the deficiency may require the Authority to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a significant deficiency in internal control and the cost of eliminating that deficiency may exceed the benefit.
Finding 2023-002
Criteria Segregation of duties should be in place to ensure appropriate checks and balances and to mitigate incompatible duties being performed by one individual over key financial and compliance functions. Condition The Authority does not maintain sufficient segregation of duties to prevent one individual from having control over each of the following areas. 1) Cash receipts – detailed recordkeeping, custody, reconciling, and posting to the general ledger. 2) Disbursements – check preparation including payroll, and posting to and maintaining the general ledger. 3) Federal compliance requirements – eligibility determinations, special tests and provisions, and reporting. Cause The Authority does not have sufficient staffing to ensure multiple individuals are involved in all significant accounting controls and transaction cycles. Effect One individual may have complete control over certain transactions and compliance determinations without adequate checks and balances or reviews being implemented. Recommendations Resolving the deficiency may require the Authority to hire additional personnel necessary to adequately separate accounting responsibilities. This solution may result in a substantial increase in operating costs. The other action would be to accept that by definition there is a significant deficiency in internal control and the cost of eliminating that deficiency may exceed the benefit.