Audit 309988

FY End
2023-12-31
Total Expended
$5.41M
Findings
2
Programs
4
Organization: Menard County Housing Authority (IL)
Year: 2023 Accepted: 2024-06-26
Auditor: Smco

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
402797 2023-001 Significant Deficiency Yes N
979239 2023-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $5.14M Yes 1
14.195 Section 8 Housing Assistance Payments Program $150,551 - 0
14.896 Family Self-Sufficiency Program $106,680 - 0
14.169 Housing Counseling Assistance Program $15,373 - 0

Contacts

Name Title Type
LC8QQDC3DKW8 Danielle Gerndt Auditee
2176327723 Chad Porter Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Accounting Policies: (1) Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Menard County Housing Authority (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non_x0002_Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Indirect Cost Rate The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414 De Minimis Rate Used: N Rate Explanation: Entity did not use De minimis rate Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Menard County Housing Authority (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non_x0002_Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Indirect Cost Rate The Authority elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414

Finding Details

The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Type of Finding: Effect: The Authority is non-compliant with the federal regulations over this federal program. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to the HQS inspections as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with finding and recommendation above. Condition: During our audit, the Authority was unable to provide us with reliable support that the failed HQS inspections had been properly handled according the guidelines. Context: We selected a sample of 24 out of 240 failed inspections that occurred during the fiscal year. Out of the 24 samples selected, 6 (25%) of those lacked the proper documentation of a follow up for the failed inspection. Cause: Controls over compliance associated with the Authority's HQS inspections are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to the HQS inspections as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with finding and recommendation above.
The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Type of Finding: Effect: The Authority is non-compliant with the federal regulations over this federal program. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to the HQS inspections as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with finding and recommendation above. Condition: During our audit, the Authority was unable to provide us with reliable support that the failed HQS inspections had been properly handled according the guidelines. Context: We selected a sample of 24 out of 240 failed inspections that occurred during the fiscal year. Out of the 24 samples selected, 6 (25%) of those lacked the proper documentation of a follow up for the failed inspection. Cause: Controls over compliance associated with the Authority's HQS inspections are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program. Recommendations: We suggest the Authority structure a system capable of properly overseeing compliance with regulations relative to the HQS inspections as well as maintaining more accurate and complete documentation of adherence to compliance. Management Views: Management agrees with finding and recommendation above.