FAC Explorer

Audit 322961

FY End
2023-12-31
Total Expended
$3.52M
Findings
2
Programs
4
Organization: The Housing Authority of the City of Colmbus (MS)
Year: 2023 Accepted: 2024-09-30
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500116 2023-002 Significant Deficiency - A
1076558 2023-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $1.71M Yes 1
14.872 Public Housing Capital Fund $1.11M - 0
84.287 Twenty-First Century Community Learning Centers $606,925 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $84,324 - 0

Contacts

Name Title Type
LLGKDBBK2ZB2 Robert Greathree Auditee
6622515786 Cole Monroe Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (1) Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Columbus Housing Authority (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non‐ Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: N/A

Finding Details

Finding 2023-002
Criteria Condition According to PHA Accounting Brief #14 Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non‐compliance. The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context The Authority reported a material ($549,444 in total, $496,338 in PHprogram) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause Effect Recommendations The Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management agrees with the finding, see Management's Corrective Action Plan. The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. The use of Due To/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program.
Finding 2023-002
Criteria Condition According to PHA Accounting Brief #14 Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non‐compliance. The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context The Authority reported a material ($549,444 in total, $496,338 in PHprogram) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause Effect Recommendations The Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management agrees with the finding, see Management's Corrective Action Plan. The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. The use of Due To/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program.