FAC Explorer

Audit 310404

FY End
2023-12-31
Total Expended
$1.16M
Findings
2
Programs
2
Organization: Washington Housing Authority (IN)
Year: 2023 Accepted: 2024-06-27
Auditor: Audit Solutions LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403249 2023-001 Significant Deficiency Yes I
979691 2023-001 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $597,344 - 0
14.872 Public Housing Capital Fund $559,808 Yes 1

Contacts

Name Title Type
LRN7DLHKH9Z7 Maria Sergesketter Auditee
8122541596 Shoaib Khar Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Housing Authority of the City of Washington, Indiana (Authority) under programs of the federal government for the year ended December 31, 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 of 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 position, or cash flows of the Authority. NOTE 2 – SUMMARY OF SIGNIFICANT 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. NOTE 3 – SOURCES OF FUNDING The schedule includes all grants and contracts entered into directly between the Authority and agencies and departments of the federal government, as well as federal funds passed through to the Authority by primary recipients. The Authority provided no part of its direct grant federal dollars to sub-recipients. NOTE 4 – SUB-RECIPIENTS There were no sub-recipients for the year ended December 31, 2023. 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.

Finding Details

Finding 2023-001
Criteria: HUD requires that all pertinent bid and contract document forms be maintained when administering a contract per HUD Handbook No. 7460.8 Rev 2 Chapter 11. Condition: I noted that the PHA did not maintain the following forms required by HUD for the Talbert’s Cleaning Painting & Construction contract: • Request for proposal or invitation for bid • Instruction to bidders • Reports, Certifications, and Other Statements of Bid • General Conditions • Construction Progress Schedule • Schedule of Amounts for Contracts Payments • Notice to Proceed • Bid Tabulation Form Questioned Costs: None noted. Effect: The PHA did not comply with HUD requirements while administering the aforementioned contract. Cause: It appears that the former administration did not follow proper procurement procedures. Recommendation: I recommend that PHA ensure that all contracts and other required forms are signed and maintained in the contract file and follow proper procurement procedures. Management’s Response: Issue: Procurement Procedures were not properly followed under Executive Director Michelle Marsh. The procurement is regarding Talbert’s Cleaning Painting & Construction. Since last year’s audit, per guidance from HUD we finished our project with Talbert’s. Root Cause: I believe the reason arose from lack of training provided to the Washington Housing Board of Commissioners and Washington Housing Authority Staff members. Also, Executive Director Michelle Marsh did not communicate with pertinent staff members regarding details or status of the project. In January 2024, all Board Members and pertinent staff completed procurement training. Preventative Action: Follow Procurement Policy, communicate, and attend training to keep up to date on pertinent information and HUD policies. Provide procurement training to all new Board members and/or new WHA staff.
Finding 2023-001
Criteria: HUD requires that all pertinent bid and contract document forms be maintained when administering a contract per HUD Handbook No. 7460.8 Rev 2 Chapter 11. Condition: I noted that the PHA did not maintain the following forms required by HUD for the Talbert’s Cleaning Painting & Construction contract: • Request for proposal or invitation for bid • Instruction to bidders • Reports, Certifications, and Other Statements of Bid • General Conditions • Construction Progress Schedule • Schedule of Amounts for Contracts Payments • Notice to Proceed • Bid Tabulation Form Questioned Costs: None noted. Effect: The PHA did not comply with HUD requirements while administering the aforementioned contract. Cause: It appears that the former administration did not follow proper procurement procedures. Recommendation: I recommend that PHA ensure that all contracts and other required forms are signed and maintained in the contract file and follow proper procurement procedures. Management’s Response: Issue: Procurement Procedures were not properly followed under Executive Director Michelle Marsh. The procurement is regarding Talbert’s Cleaning Painting & Construction. Since last year’s audit, per guidance from HUD we finished our project with Talbert’s. Root Cause: I believe the reason arose from lack of training provided to the Washington Housing Board of Commissioners and Washington Housing Authority Staff members. Also, Executive Director Michelle Marsh did not communicate with pertinent staff members regarding details or status of the project. In January 2024, all Board Members and pertinent staff completed procurement training. Preventative Action: Follow Procurement Policy, communicate, and attend training to keep up to date on pertinent information and HUD policies. Provide procurement training to all new Board members and/or new WHA staff.