FAC Explorer

Audit 309699

FY End
2023-09-30
Total Expended
$1.51M
Findings
2
Programs
3
Organization: Housing Authority of the City of Charlestown (IN)
Year: 2023 Accepted: 2024-06-24
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401797 2023-001 Significant Deficiency - N
978239 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $701,537 - 0
14.871 Section 8 Housing Choice Vouchers $428,512 - 0
14.872 Public Housing Capital Fund $384,001 Yes 1

Contacts

Name Title Type
C2UJCNNC8QF8 Mike Bainbridge Auditee
5025442784 Lee Ann Watters Auditor
No contacts on file

Notes to SEFA

Title: Note 3 - Reconciliation of federal expenditures to statement of revenues, expenses, and changes in net position Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. See notes to SEFA for chart / table.

Finding Details

Finding 2023-001
U.S. Department of Housing and Urban Development Program Name: Public Housing Capital Fund Federal Assistance Listing Number: 14.872 Significant Deficiency, Nonmaterial Noncompliance – Special Test – Obligation and Expenditure Verification Finding 2023-001 Criteria or Specific Requirement: Per 24 CFR 905.306(a) a Public Housing Agency (PHA) shall obligate capital fund grants no later than 24 months after the funds become available to the PHA. Per 24 CFR 905.306(f) a PHA shall expend capital fund grants no later than 48 months after the funds become available to the PHA. Condition: Only $70,000 of the $596,704 for the 2021 public housing capital fund grant obligations reported in LOCCS were obligated by the February 22, 2023 deadline. Additionally, the 2017 public housing capital fund grant has approximately $14,516 that was not expended within the 48-month requirement. Questioned Costs: None. Effect: By not having the funds fully obligated or expended by the required deadline, the Federal government could suspend or stop future payments until the noncompliance is remediated. Cause: Management did not ensure obligations were fully met prior to the 24-month deadline. Additionally, management did not ensure amounts were expended within the 48-month deadline. Recommendation: We recommend management implement controls to ensure capital grants are fully obligated by contractual agreements and expended within the required deadlines. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Corrective Action Plan: See Corrective Action Plan prepared by the Authority.
Finding 2023-001
U.S. Department of Housing and Urban Development Program Name: Public Housing Capital Fund Federal Assistance Listing Number: 14.872 Significant Deficiency, Nonmaterial Noncompliance – Special Test – Obligation and Expenditure Verification Finding 2023-001 Criteria or Specific Requirement: Per 24 CFR 905.306(a) a Public Housing Agency (PHA) shall obligate capital fund grants no later than 24 months after the funds become available to the PHA. Per 24 CFR 905.306(f) a PHA shall expend capital fund grants no later than 48 months after the funds become available to the PHA. Condition: Only $70,000 of the $596,704 for the 2021 public housing capital fund grant obligations reported in LOCCS were obligated by the February 22, 2023 deadline. Additionally, the 2017 public housing capital fund grant has approximately $14,516 that was not expended within the 48-month requirement. Questioned Costs: None. Effect: By not having the funds fully obligated or expended by the required deadline, the Federal government could suspend or stop future payments until the noncompliance is remediated. Cause: Management did not ensure obligations were fully met prior to the 24-month deadline. Additionally, management did not ensure amounts were expended within the 48-month deadline. Recommendation: We recommend management implement controls to ensure capital grants are fully obligated by contractual agreements and expended within the required deadlines. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Corrective Action Plan: See Corrective Action Plan prepared by the Authority.