FAC Explorer

Audit 310719

FY End
2023-09-30
Total Expended
$1.45M
Findings
2
Programs
2
Organization: Timber Hills Housing of Prentiss County (MS)
Year: 2023 Accepted: 2024-06-28
Auditor: Harper Rains Knight & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403699 2023-001 Significant Deficiency - N
980141 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.38M Yes 1
14.195 Section 8 Housing Assistance Payments Program $67,418 - 0

Contacts

Name Title Type
KTG8QQK32W61 Scott Russell Auditee
6018562362 Joey Fletcher Auditor
No contacts on file

Notes to SEFA

Title: NOTE C -U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM ("HUD") Accounting Policies: NOTE A -BASIS OF PRESENTATION Thescheduleofexpendituresoffederalawardsispreparedontheaccrualbasisofaccounting.TheinformationinthisscheduleispresentedinaccordancewiththerequirementsofTitle2U.S.CodeofFederalRegulationsPart200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederalAwards("UniformGuidance").BecausetheSchedulepresentsonlyaselectedportionoftheoperationsoftheProject,itisnotintendedtoanddoesnotpresentthefinancialposition,changesinnetassetsorcashflowsoftheProject. NOTE B -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ExpendituresreportedontheSchedulearereportedontheaccrualbasisofaccounting.SuchexpendituresarerecognizedfollowingthecostprinciplescontainedintheUniformGuidance,whereincertaintypesofexpendituresarenotallowableorarelimitedastoreimbursement.TheProjecthaselectednottousethe10-percentdeminimisindirectcostrateallowedundertheUniformGuidance. De Minimis Rate Used: N Rate Explanation: TheProjecthaselectednottousethe10-percentdeminimisindirectcostrateallowedundertheUniformGuidance. The Project has received a U. S. Department of Housing and Urban Development ("HUD") cash advance under Section 811 of the National Housing Act. The advance balance at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the advance outstanding as of September 30, 2023, consists of $1,383,763

Finding Details

Finding 2023-001
Finding 2023-001: Section 811 Capital Advance (CFDA #14.181) Type of Finding: Significant Deficiency / Noncompliance Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis. Condition: The Project continued to request tenant assistance payments for two tenants who moved out, collecting additional payments for several months. Cause: The Project's controls over monthly housing assistance payments were not working properly. Effect or Potential Effect: The incorrect request of tenant funds could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project failed to complete the monthly housing assistance payment vouchers correctly for all twelve months. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should obtain complete an accurate housing assistance payment voucher each month and reconcile all amounts requested to the accounts receivable ledger each month. Views of Responsible Officials: Management concurs with the finding. Management will submit an updated housing assistance payment voucher to repay the incorrect funds.
Finding 2023-001
Finding 2023-001: Section 811 Capital Advance (CFDA #14.181) Type of Finding: Significant Deficiency / Noncompliance Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis. Condition: The Project continued to request tenant assistance payments for two tenants who moved out, collecting additional payments for several months. Cause: The Project's controls over monthly housing assistance payments were not working properly. Effect or Potential Effect: The incorrect request of tenant funds could, at the discretion of HUD, result in the capital advance being called due, which would require the Project to reimburse HUD for the advance and pay interest. Perspective Information: The Project failed to complete the monthly housing assistance payment vouchers correctly for all twelve months. Through prior history with Project, this is not a systemic issue that cannot be rectified. Recommendations: The Project should obtain complete an accurate housing assistance payment voucher each month and reconcile all amounts requested to the accounts receivable ledger each month. Views of Responsible Officials: Management concurs with the finding. Management will submit an updated housing assistance payment voucher to repay the incorrect funds.