FAC Explorer

Audit 309426

FY End
2023-09-30
Total Expended
$16.25M
Findings
2
Programs
4
Organization: Housing Authority of the City of Jonesboro (GA)
Year: 2023 Accepted: 2024-06-20
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401322 2023-001 Significant Deficiency - E
977764 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $574,991 Yes 0
14.850 Public and Indian Housing $177,042 - 0
14.896 Family Self-Sufficiency Program $155,169 - 0
14.872 Public Housing Capital Fund $87,023 - 0

Contacts

Name Title Type
XGVHDTKB6DB5 Paul Wright Auditee
7706039726 Dale R. Rector Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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: The Authority did not elect to use the 10% de minimis cost rate. 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 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 assets, or cash flows of the Authority.
Title: SUBRECIPIENTS 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: The Authority did not elect to use the 10% de minimis cost rate. The Authority provided no federal awards to subrecipients during the fiscal year ending September 30, 2023.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE 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: The Authority did not elect to use the 10% de minimis cost rate. The Housing Authority of the City of Jonesboro received no federal awards of non-monetary assistance that are required to be disclosed for the year ended September 30, 2023. The Housing Authority of the City of Jonesboro had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended September 30, 2023. The Housing Authority of the City of Jonesboro maintains the following limits of insurance as of September 30, 2023: Property $ 7,829,500 Liability $ 1,000,000 Commercial Auto $ 1,000,000 Worker Compensation Statutory Fidelity & Crime $ 150,000 Director’s & Officer’s Liability $ 1,000,000 Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2023-001
Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN #14.871 Condition & Cause: During our review of eighty (80) Housing Choice Voucher tenant files, we noted that there were thirteen (13) files containing errors of noncompliance, or 16% of our sample. These errors consisted of missing or outdated verification of income or deductions, miscalculations of annual income, and one immaterial HAP register disagreement. We were able to extrapolate the misstatements of HAP expense and found that these errors were not pervasive to the financial statements. We noted that during the fiscal year the Authority experienced high staff turnover in the HCV department. At the time of the audit, one Housing Specialist position remained vacant. We attribute this as the cause for the noncompliance. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Recommendation: We recommend that the Agency conduct a tenant file audit of existing tenants in the HCV program to determine the extent of any additional misstatements of HAP expense. We also recommend that the Agency increase their monitoring and review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2023-001
Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN #14.871 Condition & Cause: During our review of eighty (80) Housing Choice Voucher tenant files, we noted that there were thirteen (13) files containing errors of noncompliance, or 16% of our sample. These errors consisted of missing or outdated verification of income or deductions, miscalculations of annual income, and one immaterial HAP register disagreement. We were able to extrapolate the misstatements of HAP expense and found that these errors were not pervasive to the financial statements. We noted that during the fiscal year the Authority experienced high staff turnover in the HCV department. At the time of the audit, one Housing Specialist position remained vacant. We attribute this as the cause for the noncompliance. Criteria: The Code of Federal regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Recommendation: We recommend that the Agency conduct a tenant file audit of existing tenants in the HCV program to determine the extent of any additional misstatements of HAP expense. We also recommend that the Agency increase their monitoring and review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.