FAC Explorer

Audit 316488

FY End
2023-09-30
Total Expended
$6.10M
Findings
6
Programs
3
Organization: Lee's Summit Housing Authority (MO)
Year: 2023 Accepted: 2024-08-01
Auditor: Barrale Renshaw CPAS and Advisors LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480253 2023-001 Material Weakness - N
480254 2023-002 Material Weakness - N
480255 2023-003 Material Weakness - N
1056695 2023-001 Material Weakness - N
1056696 2023-002 Material Weakness - N
1056697 2023-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $5.63M Yes 0
14.872 Public Housing Capital Fund $312,774 - 0
14.850 Public and Indian Housing $155,825 - 3

Contacts

Name Title Type
PSKEUALBWML6 Lisa Dickerson Auditee
8165241100 Louis Barrale Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: NOTE 1 - Basis of Presentation The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all Federal award programs of the Authority. All Federal awards received directly from Federal agencies as well as Federal awards passed through other governmental agencies or other entities are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) Because the Schedule presents only a select position, changes in net position or cash flows of the Authority. NOTE 2 - Significant Accounting Policies The Authority’s Schedule of Federal Awards has been prepared on the accrual basis of accounting. Grant revenue is recognized on the modified accrual bases and, when all applicable eligibility requirements are met in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The criteria established by GASB for accrual-bases recognition require that all eligibility requirements must be met, and the revenues must be available. “Available” means that the government has collected the revenues in the current period or expects to collect them soon enough after the end of the period to use them to pay liabilities of the current period. Resources received or recognized as receivables before the time requirements are met are reported as deferred revenues. The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. NOTE 3 - Contingencies In connection with various Federal grant programs the Authority is obligated to administer related programs and spend the funds in accordance with regulatory restrictions and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Authority to refund program funds. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all Federal award programs of the Authority. All Federal awards received directly from Federal agencies as well as Federal awards passed through other governmental agencies or other entities are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) Because the Schedule presents only a select position, changes in net position or cash flows of the Authority.
Title: Significant Accounting Policies Accounting Policies: NOTE 1 - Basis of Presentation The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all Federal award programs of the Authority. All Federal awards received directly from Federal agencies as well as Federal awards passed through other governmental agencies or other entities are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) Because the Schedule presents only a select position, changes in net position or cash flows of the Authority. NOTE 2 - Significant Accounting Policies The Authority’s Schedule of Federal Awards has been prepared on the accrual basis of accounting. Grant revenue is recognized on the modified accrual bases and, when all applicable eligibility requirements are met in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The criteria established by GASB for accrual-bases recognition require that all eligibility requirements must be met, and the revenues must be available. “Available” means that the government has collected the revenues in the current period or expects to collect them soon enough after the end of the period to use them to pay liabilities of the current period. Resources received or recognized as receivables before the time requirements are met are reported as deferred revenues. The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. NOTE 3 - Contingencies In connection with various Federal grant programs the Authority is obligated to administer related programs and spend the funds in accordance with regulatory restrictions and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Authority to refund program funds. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. The Authority’s Schedule of Federal Awards has been prepared on the accrual basis of accounting. Grant revenue is recognized on the modified accrual bases and, when all applicable eligibility requirements are met in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The criteria established by GASB for accrual-bases recognition require that all eligibility requirements must be met, and the revenues must be available. “Available” means that the government has collected the revenues in the current period or expects to collect them soon enough after the end of the period to use them to pay liabilities of the current period. Resources received or recognized as receivables before the time requirements are met are reported as deferred revenues. The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
Title: Contingencies Accounting Policies: NOTE 1 - Basis of Presentation The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all Federal award programs of the Authority. All Federal awards received directly from Federal agencies as well as Federal awards passed through other governmental agencies or other entities are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) Because the Schedule presents only a select position, changes in net position or cash flows of the Authority. NOTE 2 - Significant Accounting Policies The Authority’s Schedule of Federal Awards has been prepared on the accrual basis of accounting. Grant revenue is recognized on the modified accrual bases and, when all applicable eligibility requirements are met in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The criteria established by GASB for accrual-bases recognition require that all eligibility requirements must be met, and the revenues must be available. “Available” means that the government has collected the revenues in the current period or expects to collect them soon enough after the end of the period to use them to pay liabilities of the current period. Resources received or recognized as receivables before the time requirements are met are reported as deferred revenues. The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. NOTE 3 - Contingencies In connection with various Federal grant programs the Authority is obligated to administer related programs and spend the funds in accordance with regulatory restrictions and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Authority to refund program funds. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. In connection with various Federal grant programs the Authority is obligated to administer related programs and spend the funds in accordance with regulatory restrictions and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Authority to refund program funds

Finding Details

Finding 2023-001
2023-001 Internal Control Criteria: As mandated by the Budget and Accounting Procedures Act of 1950, agencies are required to establish systems of internal control. The Federal Managers Financial Integrity Act of 1982 strengthened the system by requiring agency heads to report annually according to the prescribed control standards and guidance of the Government Accountability Office (GAO) and Office of Management and Budget (OMB). An organization’s internal controls are the policies, procedures, and processes designed to safeguard company assets and minimize risk. In fact, internal control compliance plays a vital role in providing reasonable assurance that company objectives are met in an efficient and effective manner, contributing to the overall success and sustainability of an organization. Condition: We were unable to obtain an understanding of the Authority’s internal controls, due to management’s inability to provide requested internal control documentation and related policies, procedures and processes. Questioned Costs: Unknown Effect: Without effective internal controls the Authority’s ability to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial statements and compliance with applicable laws and regulations. Cause: Change in management. Recommendation: We recommend that the Authority establish an internal control system, which includes policies and procedure to minimize risks, protect assets, ensure accuracy of records and financial statements, promote operational efficiency and establishes policies and procedures.
Finding 2023-002
2023-002 Pension Criteria: The Housing Authority should have pension plan documentation available to be reviewed. Condition: The Housing Authority could not provide us with the current pension plan so we were unable to determine if the pension was correctly funded. Question Cost: Unknown Effect: We were unable to determine who was covered by the pension plan, the amount the Authority was funding and the amount that the employees should be contributing. Cause: Lack of documentation. Recommendation: We recommend the Housing Authority obtain a copy of the current pension plan from their pension provider and review payments made by the authority and it’s employs to determine if the pension has been correctly funded.
Finding 2023-003
2023-003 Missing Documentation Criteria: Requested information should be readily available for audit examination. Accurate record keeping and reporting are crucial to the successful management of funded activities. Condition: The Authority was unable to provide a majority of the supporting documentation. This includes but is not limited to the following significant areas: • invoices • tenant files • bank statements • payroll registers • operating budget The Authority was unable to produce the requested documents supporting Housing Authority financial statements. Questioned Cost: Cannot be determined, due to incomplete information. Effect: Housing Authority’s financial statements are not supported. Cause: Lack of prior management oversight. Recommendation: We recommend the Housing Authority’s management implement a system to maintain source documents and files that support the financial transactions.
Finding 2023-001
2023-001 Internal Control Criteria: As mandated by the Budget and Accounting Procedures Act of 1950, agencies are required to establish systems of internal control. The Federal Managers Financial Integrity Act of 1982 strengthened the system by requiring agency heads to report annually according to the prescribed control standards and guidance of the Government Accountability Office (GAO) and Office of Management and Budget (OMB). An organization’s internal controls are the policies, procedures, and processes designed to safeguard company assets and minimize risk. In fact, internal control compliance plays a vital role in providing reasonable assurance that company objectives are met in an efficient and effective manner, contributing to the overall success and sustainability of an organization. Condition: We were unable to obtain an understanding of the Authority’s internal controls, due to management’s inability to provide requested internal control documentation and related policies, procedures and processes. Questioned Costs: Unknown Effect: Without effective internal controls the Authority’s ability to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial statements and compliance with applicable laws and regulations. Cause: Change in management. Recommendation: We recommend that the Authority establish an internal control system, which includes policies and procedure to minimize risks, protect assets, ensure accuracy of records and financial statements, promote operational efficiency and establishes policies and procedures.
Finding 2023-002
2023-002 Pension Criteria: The Housing Authority should have pension plan documentation available to be reviewed. Condition: The Housing Authority could not provide us with the current pension plan so we were unable to determine if the pension was correctly funded. Question Cost: Unknown Effect: We were unable to determine who was covered by the pension plan, the amount the Authority was funding and the amount that the employees should be contributing. Cause: Lack of documentation. Recommendation: We recommend the Housing Authority obtain a copy of the current pension plan from their pension provider and review payments made by the authority and it’s employs to determine if the pension has been correctly funded.
Finding 2023-003
2023-003 Missing Documentation Criteria: Requested information should be readily available for audit examination. Accurate record keeping and reporting are crucial to the successful management of funded activities. Condition: The Authority was unable to provide a majority of the supporting documentation. This includes but is not limited to the following significant areas: • invoices • tenant files • bank statements • payroll registers • operating budget The Authority was unable to produce the requested documents supporting Housing Authority financial statements. Questioned Cost: Cannot be determined, due to incomplete information. Effect: Housing Authority’s financial statements are not supported. Cause: Lack of prior management oversight. Recommendation: We recommend the Housing Authority’s management implement a system to maintain source documents and files that support the financial transactions.