FAC Explorer

Audit 316701

FY End
2023-12-31
Total Expended
$1.46M
Findings
2
Programs
3
Organization: Montgomery County Housing Authority (TX)
Year: 2023 Accepted: 2024-08-06
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480510 2023-001 Significant Deficiency Yes N
1056952 2023-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $521,821 - 0
14.871 Section 8 Housing Choice Vouchers $484,051 Yes 0
14.872 Public Housing Capital Fund $454,229 Yes 1

Contacts

Name Title Type
PMNKGTFHH8M9 Amanda Bone Auditee
2175323672 Rich Larsen Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the Authority under programs of the federal government for the year ended December 31, 2023. The information in the 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 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. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: INDIRECT COST RATE The Authority has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Number: 14.872 Noncompliance – N. Special Tests and Provisions - Capital Funds for Operating Costs Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Testing and Provisions Criteria: Capital funds transferred to operations (BLI 1406) are not considered obligated until the Authority has budgeted and drawn down the funds. To meet this requirement, the funds must be budgeted in line BLI 1406 (Operations) and the Authority must submit the voucher request in LOCCs. The Authority's reported obligation amount in LOCCs must be the same amount in the Authority's accounting system since the date of the voucher request in LOCCs is the point of obligation for funds in BLI 1406. The voucher request date must occur before those funds are reported as obligated in LOCCs under the obligations and expenditures tab (24 CFR section 905.314(I)). Condition: Based upon inspection of the Authority’s voucher requests and LOCCs' obligations and expenditures tab, the Authority obligated capital funds for operations prior to submitting the voucher requests. Cause: The Authority did not follow the compliance requirement related to capital funds for operating costs by obligating capital funds for operations prior to submitting the voucher requests. Effect: The Public Housing Capital Fund Program is in non-compliance with the special tests and provisions type of compliance as it related to capital funds for operating costs. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority's Response: The Authority accepts the recommendation of the auditor. The Authority has updated the practice to follow the HUD compliance supplement.
Finding 2023-001
Finding 2023-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public Housing Capital Fund Program Federal Assistance Listing Number: 14.872 Noncompliance – N. Special Tests and Provisions - Capital Funds for Operating Costs Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Testing and Provisions Criteria: Capital funds transferred to operations (BLI 1406) are not considered obligated until the Authority has budgeted and drawn down the funds. To meet this requirement, the funds must be budgeted in line BLI 1406 (Operations) and the Authority must submit the voucher request in LOCCs. The Authority's reported obligation amount in LOCCs must be the same amount in the Authority's accounting system since the date of the voucher request in LOCCs is the point of obligation for funds in BLI 1406. The voucher request date must occur before those funds are reported as obligated in LOCCs under the obligations and expenditures tab (24 CFR section 905.314(I)). Condition: Based upon inspection of the Authority’s voucher requests and LOCCs' obligations and expenditures tab, the Authority obligated capital funds for operations prior to submitting the voucher requests. Cause: The Authority did not follow the compliance requirement related to capital funds for operating costs by obligating capital funds for operations prior to submitting the voucher requests. Effect: The Public Housing Capital Fund Program is in non-compliance with the special tests and provisions type of compliance as it related to capital funds for operating costs. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Authority's Response: The Authority accepts the recommendation of the auditor. The Authority has updated the practice to follow the HUD compliance supplement.