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Audit 311099

FY End
2023-09-30
Total Expended
$8.47M
Findings
6
Programs
6
Organization: Wise County Redevelopment and Housing Authority (VA)
Year: 2023 Accepted: 2024-06-29
Auditor: Bostic Tucker and Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
404717 2023-001 - - N
404718 2023-002 Material Weakness - C
404719 2023-003 Material Weakness - AB
981159 2023-001 - - N
981160 2023-002 Material Weakness - C
981161 2023-003 Material Weakness - AB

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $2.96M - 0
14.871 Section 8 Housing Choice Vouchers $2.90M - 1
14.872 Public Housing Capital Fund $965,167 Yes 1
14.850 Public and Indian Housing $785,684 Yes 1
10.427 Rural Rental Assistance Payments $371,277 - 0
10.766 Community Facilities Loans and Grants $268,466 - 0

Contacts

Name Title Type
QXLFJ817TTK3 Zachary Bowen Auditee
2763956104 Greg Tucker Auditor
No contacts on file

Notes to SEFA

Title: 1 Accounting Policies: The accompanying schedule of expenditures of federal awards includes the activity of Scott County Redevelopment and Housing Authority (the Authority) under programs of the federal government for the year ended September, 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 for 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. 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. Amounts reported in the accompanying schedule agree with amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with generally accepted principles. De Minimis Rate Used: N Rate Explanation: N/A Major program
Title: 2 Accounting Policies: The accompanying schedule of expenditures of federal awards includes the activity of Scott County Redevelopment and Housing Authority (the Authority) under programs of the federal government for the year ended September, 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 for 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. 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. Amounts reported in the accompanying schedule agree with amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with generally accepted principles. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards includes the activity of Wise County Redevelopment and Housing Authority (the Authority) under programs of the federal government for the year ended September 30, 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 for 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.
Title: 3 Accounting Policies: The accompanying schedule of expenditures of federal awards includes the activity of Scott County Redevelopment and Housing Authority (the Authority) under programs of the federal government for the year ended September, 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 for 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. 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. Amounts reported in the accompanying schedule agree with amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with generally accepted principles. De Minimis Rate Used: N Rate Explanation: N/A Outstanding Loan Balance

Finding Details

Finding 2023-001
Public Housing Authorities are required to enter into a depository agreement with their financial institution using the HUD-Public Housing Authorities are required to enter into a depository agreement with their financial institution using the HUD- 51999) or a form required by HUD in the Annual Contributions Contract (ACC) for the development and operations of public housing projects. The agreement serves as safe guards for Federal funds and provides third party rights to HUD (Section 9 of the ACC). The Authority did not have the required HUD-51999 depository agreement executed during the fiscal year.
Finding 2023-002
The Authority paid contractor and other associated invoices before submitting requests for payment in LOCCS up to two months in advance. In addition, when funds received, payment occurred more than three days after deposit. LOCCS drawdowns did reflect actual payment totals to vendors. The Authority is not in compliance with the HUD requirements for the fiscal requirements for the capital fund program. Other program funds were used for payment pending drawdown from LOCCS for approximately two months in one instance.
Finding 2023-003
Expenditures charged to a federal program must be supported by adequate documentation and be reasonable and necessary for program operation. The Housing Authority has developed cost allocation plans in which a percentage of the Housing Authority’s expenses, such as payroll and benefit expenses, are charged to the federal program for administering the program. The Housing did not have controls in place to verify that costs allocated through the cost allocation plan were updated for changes in hours worked for individual programs. The Housing Authority could not provide adequate support for payroll expense allocation.
Finding 2023-001
Public Housing Authorities are required to enter into a depository agreement with their financial institution using the HUD-Public Housing Authorities are required to enter into a depository agreement with their financial institution using the HUD- 51999) or a form required by HUD in the Annual Contributions Contract (ACC) for the development and operations of public housing projects. The agreement serves as safe guards for Federal funds and provides third party rights to HUD (Section 9 of the ACC). The Authority did not have the required HUD-51999 depository agreement executed during the fiscal year.
Finding 2023-002
The Authority paid contractor and other associated invoices before submitting requests for payment in LOCCS up to two months in advance. In addition, when funds received, payment occurred more than three days after deposit. LOCCS drawdowns did reflect actual payment totals to vendors. The Authority is not in compliance with the HUD requirements for the fiscal requirements for the capital fund program. Other program funds were used for payment pending drawdown from LOCCS for approximately two months in one instance.
Finding 2023-003
Expenditures charged to a federal program must be supported by adequate documentation and be reasonable and necessary for program operation. The Housing Authority has developed cost allocation plans in which a percentage of the Housing Authority’s expenses, such as payroll and benefit expenses, are charged to the federal program for administering the program. The Housing did not have controls in place to verify that costs allocated through the cost allocation plan were updated for changes in hours worked for individual programs. The Housing Authority could not provide adequate support for payroll expense allocation.