FAC Explorer

Audit 321371

FY End
2023-12-31
Total Expended
$1.69M
Findings
2
Programs
5
Organization: Uniontown Housing Authority (AL)
Year: 2023 Accepted: 2024-09-26
Auditor: Henderson & Pilleteri LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498661 2023-001 Significant Deficiency - N
1075103 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $482,379 Yes 1
10.415 Rural Rental Housing Loans $429,437 - 0
14.850 Public Housing Operating Fund $365,457 - 0
14.U01 Section 8 New Construction and Substantial Rehabilitation $239,898 - 0
14.871 Section 8 Housing Choice Vouchers $170,117 - 0

Contacts

Name Title Type
MKQBGMGN6FK1 Erika Turner Auditee
3346282051 Roy W. Henderson Jr. Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 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: Note 2 – Summary of Significant Accounting Policies Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Authority has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 – Loan Balances Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate Expenditures of Federal Awards related to outstanding loans: Balance of loans as of December 31, 2022 $429,437 Current year expenditures of loan proceeds - 429,437 Principal payments (28,563) Balance as of December 31, 2023 $400,874

Finding Details

Finding 2023-001
2023-001 ALN 14.872 – Public Housing Capital Funds Program – Wage Rate Requirements Condition and Criteria: The Authority, under prior management, was not able to provide necessary documentation such as the weekly certified payroll report and employee interviews as required by the Department of Labor’s Davis-Bacon Act. The Davis-Bacon Act requires a contractor whose contract is over $2,000 to provide weekly certified payrolls to prove that they are paying prevailing wage rates. Amount of Questioned Costs: None. Context: Under prior management, as a result of the determination that the internal controls over Davis-Bacon wage rate requirements were likely to be ineffective, and due to the fact that the Authority explained that they could not locate any weekly certified payrolls or interviews for our audit, no tests of noncompliance were performed. Cause: No procedure exists for Capital Fund Program projects to follow up on stipulations within the contract requiring contractors to submit weekly wage reports, nor does a procedure exist whereby the Authority interviews contracted employees to ensure they are being paid fairly. Effect: The Authority does not have proper controls in place to ensure compliance with the Department of Labor’s Davis-Bacon Act. As a result, contractors could be underpaid while working on Authority projects. Auditor’s Recommendation: Implement procedures to follow up on the obligations of contractors to produce weekly wage reports and compare them with prevailing wage rates. Also, make physical inspections and interview employees to ascertain that the information is accurate. Grantee Response: Current management acknowledges the finding and will follow the auditor’s recommendation.
Finding 2023-001
2023-001 ALN 14.872 – Public Housing Capital Funds Program – Wage Rate Requirements Condition and Criteria: The Authority, under prior management, was not able to provide necessary documentation such as the weekly certified payroll report and employee interviews as required by the Department of Labor’s Davis-Bacon Act. The Davis-Bacon Act requires a contractor whose contract is over $2,000 to provide weekly certified payrolls to prove that they are paying prevailing wage rates. Amount of Questioned Costs: None. Context: Under prior management, as a result of the determination that the internal controls over Davis-Bacon wage rate requirements were likely to be ineffective, and due to the fact that the Authority explained that they could not locate any weekly certified payrolls or interviews for our audit, no tests of noncompliance were performed. Cause: No procedure exists for Capital Fund Program projects to follow up on stipulations within the contract requiring contractors to submit weekly wage reports, nor does a procedure exist whereby the Authority interviews contracted employees to ensure they are being paid fairly. Effect: The Authority does not have proper controls in place to ensure compliance with the Department of Labor’s Davis-Bacon Act. As a result, contractors could be underpaid while working on Authority projects. Auditor’s Recommendation: Implement procedures to follow up on the obligations of contractors to produce weekly wage reports and compare them with prevailing wage rates. Also, make physical inspections and interview employees to ascertain that the information is accurate. Grantee Response: Current management acknowledges the finding and will follow the auditor’s recommendation.