FAC Explorer

Audit 323183

FY End
2023-12-31
Total Expended
$1.52M
Findings
2
Programs
4
Organization: Housing Authority of the City of Sheboygan (WI)
Year: 2023 Accepted: 2024-09-30
Auditor: Collins & Associates S C

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500424 2023-001 Significant Deficiency - E
1076866 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.10M Yes 1
14.872 Public Housing Capital Fund $209,561 - 0
14.850 Public Housing Operating Fund $155,446 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $52,199 - 0

Contacts

Name Title Type
JSCCJHP2H273 Melody Hermann Auditee
9204593466 Bradley Berthiaume CPA 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 allowable or are limited as to reimbursement. The Housing Authority did not elect to use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. De Minimis Rate Used: N Rate Explanation: The Authority is not reimbursed for indirect costs under any of its federal Awards and does not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance or any other indirect cost rate. The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal grant activity of the Housing Authority of the City of Sheboygan (Housing 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 Housing Authority it is not intended to and does not present the financial position, changes in net position or cash flows of the Housing Authority. The reporting entity for the Housing Authority is based upon criteria established by the Governmental Accounting Standards Board. The Housing Authority is the primary government according to GASB criteria, while Wasserman Redevelopment, LLC is a component unit. Federal awards received directly by Wasserman Redevelopment; LLC are not included in this report since the company expended less than $750,000 in federal awards during the year ended December 31, 2023.
Title: Summary of Significant Accounting Policies 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 allowable or are limited as to reimbursement. The Housing Authority did not elect to use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. De Minimis Rate Used: N Rate Explanation: The Authority is not reimbursed for indirect costs under any of its federal Awards and does not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance or any other indirect 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. The Housing Authority did not elect to use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards.
Title: Subrecipient Payments 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 allowable or are limited as to reimbursement. The Housing Authority did not elect to use the 10% de minimis indirect cost rate as covered in section 200.414 of the Uniform Guidance for Federal Awards. De Minimis Rate Used: N Rate Explanation: The Authority is not reimbursed for indirect costs under any of its federal Awards and does not use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance or any other indirect cost rate. No federal awards were passed through to subrecipients during the year ended December 31, 2023.

Finding Details

Finding 2023-001
FINDING NO. CONTROL DEFICIENCIES 2023-001 Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster FAL Number: 14.871 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance, Significant Deficiency Criteria: The Authority is required to have documents from the tenant to provide necessary information/documentation, third party verification of asset valuations, release of information documentation, and income eligibility and calculations of tenants rent from asset/income documentation. The Authority is required to determine eligibility at least annually or if the tenant's income changes during the year. Condition: As part of our testing, we found three tenant files that were missing income verification documentation in the tenant files to verify that the tenant was eligible and HAP and that the rent amount was properly calculated. Questioned Costs: Not determined Cause: The Authority did not perform review procedures properly designed to ensure that all the documentation was in the tenant's file to determine if they were eligible and that the tenant rent/HAP payment was correct. Effect: HAP payments to landlords could be improperly calculated and tenants not eligible could be included in the program. Repeat Finding: No Recommendation: We recommend the Authority to update their internal control policies to require a review of the tenant files from another qualified personel or have a checklist to be filled out in a timely manner when checking eligibility/HAP amounts to landlords. Views of responsible officials: There is no disagreements with audit finding
Finding 2023-001
FINDING NO. CONTROL DEFICIENCIES 2023-001 Eligibility Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster FAL Number: 14.871 Award Period: January 1, 2023 through December 31, 2023 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance, Significant Deficiency Criteria: The Authority is required to have documents from the tenant to provide necessary information/documentation, third party verification of asset valuations, release of information documentation, and income eligibility and calculations of tenants rent from asset/income documentation. The Authority is required to determine eligibility at least annually or if the tenant's income changes during the year. Condition: As part of our testing, we found three tenant files that were missing income verification documentation in the tenant files to verify that the tenant was eligible and HAP and that the rent amount was properly calculated. Questioned Costs: Not determined Cause: The Authority did not perform review procedures properly designed to ensure that all the documentation was in the tenant's file to determine if they were eligible and that the tenant rent/HAP payment was correct. Effect: HAP payments to landlords could be improperly calculated and tenants not eligible could be included in the program. Repeat Finding: No Recommendation: We recommend the Authority to update their internal control policies to require a review of the tenant files from another qualified personel or have a checklist to be filled out in a timely manner when checking eligibility/HAP amounts to landlords. Views of responsible officials: There is no disagreements with audit finding