FAC Explorer

Audit 310431

FY End
2023-09-30
Total Expended
$871,133
Findings
4
Programs
4
Organization: Housing Authority of the County of Ford (IL)
Year: 2023 Accepted: 2024-06-27
Auditor: Pamela J Simpson CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403258 2023-001 Material Weakness - P
403259 2023-001 Material Weakness - P
979700 2023-001 Material Weakness - P
979701 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $526,128 Yes 1
14.850 Public and Indian Housing $184,508 - 1
14.872 Public Housing Capital Fund $160,497 - 0
14.871 Section 8 Housing Choice Vouchers $0 - 0

Contacts

Name Title Type
MPKHSMGA55W1 Jamie Satterfield Auditee
2177845488 Pamela Simpson Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the County of Ford (Authority) and is presented on the accrual basis of accounting. The schedule summarizes the federal funds expended by the Authority under the programs of the federal government during the year ended September 30, 2023. The schedule of expenditures of federal awards displays the Authority’s expenditures charged to federal programs for the year ended September 30, 2023, the cost principals in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the County of Ford (Authority) and is presented on the accrual basis of accounting. The schedule summarizes the federal funds expended by the Authority under the programs of the federal government during the year ended September 30, 2023. The schedule of expenditures of federal awards displays the Authority’s expenditures charged to federal programs for the year ended September 30, 2023, the cost principals in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 2 – Sources of Funding Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the County of Ford (Authority) and is presented on the accrual basis of accounting. The schedule summarizes the federal funds expended by the Authority under the programs of the federal government during the year ended September 30, 2023. The schedule of expenditures of federal awards displays the Authority’s expenditures charged to federal programs for the year ended September 30, 2023, the cost principals in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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.
Title: Note 3 - Reconciliation of Federal Expenditures Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the County of Ford (Authority) and is presented on the accrual basis of accounting. The schedule summarizes the federal funds expended by the Authority under the programs of the federal government during the year ended September 30, 2023. The schedule of expenditures of federal awards displays the Authority’s expenditures charged to federal programs for the year ended September 30, 2023, the cost principals in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority has not implemented the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Total Federal Expenditures per Schedule of Federal Awards $ 871,133 Reconciling item: Department of Agriculture, Rural Housing (Note 15) -511,403 Total Federal Assistance per Financial Statements $ 359,730 HUD Subsidy $ 345,005 Rural Development Subsidy 14,725 Total Subsidy $ 359,730

Finding Details

Finding 2023-001
Criteria or specific requirement: AU Section 325 indicates that the “failure of controls designed to safeguard assets from loss, damage or misappropriations” should be regarded as a material weakness in internal controls. In order to safeguard assets, the Ford County Housing Authority’s Internal Control Policy requires that all disbursements be appropriately explained and documented. Statements are to be adequately supported by detailed invoices prior to payment. All disbursements except for payroll taxes and loan payments are to be made by check; all checks are to be co-signed by the Executive Director and a Board member. Condition: Electronic payments of the monthly credit card statements and other vendor payments were noted that did not have all of the required detailed invoices attached to support the charges. Effect: The electronic payments were not fully supported by the required, detailed invoices. Lack of supporting detail results in expenditures that may not be allowable. Electronic payments of vendor bills and credit cards are not allowed according to the Housing Authority’s internal control policy. A Board member is not signing off on the payment as required. Cause: The internal controls established are not being followed. Recommendation: It is recommended that all electronic payments be discontinued in accordance with Housing Authority’s policy. All expenditures must have complete, detailed support attached prior to a check being prepared for payment. Two signatures must be affixed to all checks as the final approval prior to distribution.
Finding 2023-001
Criteria or specific requirement: AU Section 325 indicates that the “failure of controls designed to safeguard assets from loss, damage or misappropriations” should be regarded as a material weakness in internal controls. In order to safeguard assets, the Ford County Housing Authority’s Internal Control Policy requires that all disbursements be appropriately explained and documented. Statements are to be adequately supported by detailed invoices prior to payment. All disbursements except for payroll taxes and loan payments are to be made by check; all checks are to be co-signed by the Executive Director and a Board member. Condition: Electronic payments of the monthly credit card statements and other vendor payments were noted that did not have all of the required detailed invoices attached to support the charges. Effect: The electronic payments were not fully supported by the required, detailed invoices. Lack of supporting detail results in expenditures that may not be allowable. Electronic payments of vendor bills and credit cards are not allowed according to the Housing Authority’s internal control policy. A Board member is not signing off on the payment as required. Cause: The internal controls established are not being followed. Recommendation: It is recommended that all electronic payments be discontinued in accordance with Housing Authority’s policy. All expenditures must have complete, detailed support attached prior to a check being prepared for payment. Two signatures must be affixed to all checks as the final approval prior to distribution.
Finding 2023-001
Criteria or specific requirement: AU Section 325 indicates that the “failure of controls designed to safeguard assets from loss, damage or misappropriations” should be regarded as a material weakness in internal controls. In order to safeguard assets, the Ford County Housing Authority’s Internal Control Policy requires that all disbursements be appropriately explained and documented. Statements are to be adequately supported by detailed invoices prior to payment. All disbursements except for payroll taxes and loan payments are to be made by check; all checks are to be co-signed by the Executive Director and a Board member. Condition: Electronic payments of the monthly credit card statements and other vendor payments were noted that did not have all of the required detailed invoices attached to support the charges. Effect: The electronic payments were not fully supported by the required, detailed invoices. Lack of supporting detail results in expenditures that may not be allowable. Electronic payments of vendor bills and credit cards are not allowed according to the Housing Authority’s internal control policy. A Board member is not signing off on the payment as required. Cause: The internal controls established are not being followed. Recommendation: It is recommended that all electronic payments be discontinued in accordance with Housing Authority’s policy. All expenditures must have complete, detailed support attached prior to a check being prepared for payment. Two signatures must be affixed to all checks as the final approval prior to distribution.
Finding 2023-001
Criteria or specific requirement: AU Section 325 indicates that the “failure of controls designed to safeguard assets from loss, damage or misappropriations” should be regarded as a material weakness in internal controls. In order to safeguard assets, the Ford County Housing Authority’s Internal Control Policy requires that all disbursements be appropriately explained and documented. Statements are to be adequately supported by detailed invoices prior to payment. All disbursements except for payroll taxes and loan payments are to be made by check; all checks are to be co-signed by the Executive Director and a Board member. Condition: Electronic payments of the monthly credit card statements and other vendor payments were noted that did not have all of the required detailed invoices attached to support the charges. Effect: The electronic payments were not fully supported by the required, detailed invoices. Lack of supporting detail results in expenditures that may not be allowable. Electronic payments of vendor bills and credit cards are not allowed according to the Housing Authority’s internal control policy. A Board member is not signing off on the payment as required. Cause: The internal controls established are not being followed. Recommendation: It is recommended that all electronic payments be discontinued in accordance with Housing Authority’s policy. All expenditures must have complete, detailed support attached prior to a check being prepared for payment. Two signatures must be affixed to all checks as the final approval prior to distribution.