FAC Explorer

Audit 31889

FY End
2022-12-31
Total Expended
$9.09M
Findings
2
Programs
5
Organization: Waukegan Housing Authority (IL)
Year: 2022 Accepted: 2023-09-27
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30284 2022-001 - - N
606726 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $6.98M Yes 1
14.850 Public and Indian Housing $1.42M Yes 0
14.872 Public Housing Capital Fund $383,722 Yes 0
14.879 Mainstream Vouchers $216,444 Yes 0
14.896 Family Self-Sufficiency Program $92,419 - 0

Contacts

Name Title Type
JE5KR4AJMJG3 Charles J Chambers, Jr. Auditee
8472448500 Tim Sumrall Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The above schedule of expenditures of federal awards includes the federal grant activity of the Authority and is presented on the accrual basis of accounting. The information on 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. Because the schedule presents only a selected portion of operations of the Authority it is notintended to and does not present the financial net position, changes in net position or cash flows of the Authority.

Finding Details

Finding 2022-001
Finding 2022 - 001 - Housing Choice Vouchers HQS Inspection Deficiencies Housing Choice Vouchers ? CFDA No. 14.871; Grant period - year ended December 31, 2022 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for annual inspections to determine if the units leased to families meet the Housing Quality Standards. Specifically, HUD regulations CFR Parts 982.158 and 982.404 require inspections of units under HAP contract that fail to meet HQS. The PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition & Cause: HQS inspections were tested for compliance in the current year. Of the 12 failed HQS inspections selected for review: 5 units were not re-inspected within the 30-day requirement. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified Repeat Finding: No Recommendation: We recommend the Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required time-frame to meet the compliance requirements. Management?s Response to Finding: We concur with the recommendation, and we will put procedures in place to make sure that the financial reports are submitted to HUD within the required time. Responsible Party: Charles Chambers, Jr., Executive Director, (847)244-8500. Anticipated Completion Date: December 31, 2023 Reply: The Authority is in the continuing to work on the procedures for failed inspections to ensure that the re-inspections are performed within the 30-day requirement. The Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements. Charles Chambers, Jr., Executive Director, expects the deficiencies which led to this finding to be resolved and this finding to be cleared in the 2023 fiscal year audit.
Finding 2022-001
Finding 2022 - 001 - Housing Choice Vouchers HQS Inspection Deficiencies Housing Choice Vouchers ? CFDA No. 14.871; Grant period - year ended December 31, 2022 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for annual inspections to determine if the units leased to families meet the Housing Quality Standards. Specifically, HUD regulations CFR Parts 982.158 and 982.404 require inspections of units under HAP contract that fail to meet HQS. The PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition & Cause: HQS inspections were tested for compliance in the current year. Of the 12 failed HQS inspections selected for review: 5 units were not re-inspected within the 30-day requirement. Effect: Non-compliance with HUD regulations. Questioned Costs: None Identified Repeat Finding: No Recommendation: We recommend the Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required time-frame to meet the compliance requirements. Management?s Response to Finding: We concur with the recommendation, and we will put procedures in place to make sure that the financial reports are submitted to HUD within the required time. Responsible Party: Charles Chambers, Jr., Executive Director, (847)244-8500. Anticipated Completion Date: December 31, 2023 Reply: The Authority is in the continuing to work on the procedures for failed inspections to ensure that the re-inspections are performed within the 30-day requirement. The Authority is also planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements. Charles Chambers, Jr., Executive Director, expects the deficiencies which led to this finding to be resolved and this finding to be cleared in the 2023 fiscal year audit.