FAC Explorer

Audit 310962

FY End
2023-09-30
Total Expended
$7.81M
Findings
8
Programs
3
Organization: Housing Authority of the City of Deerfield Beach (FL)
Year: 2023 Accepted: 2024-06-28
Auditor: Smco

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
404189 2023-001 Significant Deficiency - L
404190 2023-002 Significant Deficiency - A
404191 2023-001 Significant Deficiency - L
404192 2023-002 Significant Deficiency - A
980631 2023-001 Significant Deficiency - L
980632 2023-002 Significant Deficiency - A
980633 2023-001 Significant Deficiency - L
980634 2023-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.62M Yes 2
14.879 Mainstream Vouchers $111,780 Yes 2
14.896 Family Self-Sufficiency Program $75,907 - 0

Contacts

Name Title Type
LKB2GSBL4Q24 Latonya Coley Auditee
9544280678 Chad Porter Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: SCOPE OF PRESENTATION Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (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. 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-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 De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. This schedule also only includes the amounts expended by the Authority, none of the amount expended, if any, by the blended or discretely present component units have been included.
Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (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. 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-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 De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: NOTE 3: 10% DE MINIMIS INDIRECT COST RATE Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (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. 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-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 De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2023-001
2023-001 Unaudited Submission Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for its unaudited REAC FDS submission. Context The Authority 's unaudited FDS submission was due on December 15th, 2023. The Authority did not submit the submission until December 28th, 2023. Cause Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect The Authority is not in compliant with the reporting guidelines outlined in the HCV compliance supplement. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-002
2023-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria According to PHA Accounting Brief #14 Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations The Housing Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-001
2023-001 Unaudited Submission Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for its unaudited REAC FDS submission. Context The Authority 's unaudited FDS submission was due on December 15th, 2023. The Authority did not submit the submission until December 28th, 2023. Cause Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect The Authority is not in compliant with the reporting guidelines outlined in the HCV compliance supplement. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-002
2023-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria According to PHA Accounting Brief #14 Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations The Housing Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-001
2023-001 Unaudited Submission Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for its unaudited REAC FDS submission. Context The Authority 's unaudited FDS submission was due on December 15th, 2023. The Authority did not submit the submission until December 28th, 2023. Cause Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect The Authority is not in compliant with the reporting guidelines outlined in the HCV compliance supplement. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-002
2023-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria According to PHA Accounting Brief #14 Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations The Housing Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-001
2023-001 Unaudited Submission Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for its unaudited REAC FDS submission. Context The Authority 's unaudited FDS submission was due on December 15th, 2023. The Authority did not submit the submission until December 28th, 2023. Cause Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect The Authority is not in compliant with the reporting guidelines outlined in the HCV compliance supplement. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views Management agrees with the finding, see Management's corrective action plan.
Finding 2023-002
2023-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria According to PHA Accounting Brief #14 Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations The Housing Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views Management agrees with the finding, see Management's corrective action plan.