Audit 326747

FY End
2024-06-30
Total Expended
$70.43M
Findings
8
Programs
11
Year: 2024 Accepted: 2024-10-31
Auditor: Eide Bailly LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
504240 2024-001 Significant Deficiency - A
504241 2024-002 Significant Deficiency - N
504242 2024-001 Significant Deficiency - A
504243 2024-002 Significant Deficiency - N
1080682 2024-001 Significant Deficiency - A
1080683 2024-002 Significant Deficiency - N
1080684 2024-001 Significant Deficiency - A
1080685 2024-002 Significant Deficiency - N

Contacts

Name Title Type
NQW1BHKPK8U3 Todd Hight Auditee
6057735665 Tara Engquist Auditor
No contacts on file

Notes to SEFA

Title: Note A – Basis of Presentation Accounting Policies: Note B - Significant Accounting Policies Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which are recorded on the cash basis. 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. De Minimis Rate Used: N Rate Explanation: Note C – Indirect Cost Rate The Authority has not elected to use the 10% 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 June 30, 2024. The information 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.

Finding Details

U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Activities Allowed and Allowable Costs Significant Deficiency in Internal Controls Criteria: Uniform Guidance requires that payroll costs allocated to a program be based on actual time work based on proper support. Condition: In three instances, the amount reimbursed to subrecipients were paid out based on the persons paycheck stub showing allocation of hours which did not match backup provided for hours worked under the program, Cause: ESG employee used an amount that differed from the backup provided by subrecipient. Effect: Payments were either overpaid or underpaid to subrecipients. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: We recommend a review of the actual hours worked to ensure that proper amounts are reimbursed to the subrecipients. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Special Tests and Provisions - Obligation, Expenditure and Payment Requirements Significant Deficiency in Internal Controls and Compliance Criteria: Section 24 CFR Section 576.203 requires that the grant recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: As part of our testing for the special tests and provisions compliance requirements, we selected a sample of 49 payments to subrecipients. Of the 49, eleven payments were made outside of the 30-day requirement. Cause: During the processing of the requests for payments, the Authority had difficulties with information provided which caused additional timing in processing payments. Effect: Subrecipients were not paid reimbursements in a timely manner as required. Questioned Costs: None. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: The Authority should implement a control structure to track when payment requests are received and notify staff when they are close to the 30-day requirement. Also, we recommend that information for the last date of payment, including correspondence on issues that arise with the information provided, be documented and retained. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Activities Allowed and Allowable Costs Significant Deficiency in Internal Controls Criteria: Uniform Guidance requires that payroll costs allocated to a program be based on actual time work based on proper support. Condition: In three instances, the amount reimbursed to subrecipients were paid out based on the persons paycheck stub showing allocation of hours which did not match backup provided for hours worked under the program, Cause: ESG employee used an amount that differed from the backup provided by subrecipient. Effect: Payments were either overpaid or underpaid to subrecipients. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: We recommend a review of the actual hours worked to ensure that proper amounts are reimbursed to the subrecipients. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Special Tests and Provisions - Obligation, Expenditure and Payment Requirements Significant Deficiency in Internal Controls and Compliance Criteria: Section 24 CFR Section 576.203 requires that the grant recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: As part of our testing for the special tests and provisions compliance requirements, we selected a sample of 49 payments to subrecipients. Of the 49, eleven payments were made outside of the 30-day requirement. Cause: During the processing of the requests for payments, the Authority had difficulties with information provided which caused additional timing in processing payments. Effect: Subrecipients were not paid reimbursements in a timely manner as required. Questioned Costs: None. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: The Authority should implement a control structure to track when payment requests are received and notify staff when they are close to the 30-day requirement. Also, we recommend that information for the last date of payment, including correspondence on issues that arise with the information provided, be documented and retained. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Activities Allowed and Allowable Costs Significant Deficiency in Internal Controls Criteria: Uniform Guidance requires that payroll costs allocated to a program be based on actual time work based on proper support. Condition: In three instances, the amount reimbursed to subrecipients were paid out based on the persons paycheck stub showing allocation of hours which did not match backup provided for hours worked under the program, Cause: ESG employee used an amount that differed from the backup provided by subrecipient. Effect: Payments were either overpaid or underpaid to subrecipients. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: We recommend a review of the actual hours worked to ensure that proper amounts are reimbursed to the subrecipients. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Special Tests and Provisions - Obligation, Expenditure and Payment Requirements Significant Deficiency in Internal Controls and Compliance Criteria: Section 24 CFR Section 576.203 requires that the grant recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: As part of our testing for the special tests and provisions compliance requirements, we selected a sample of 49 payments to subrecipients. Of the 49, eleven payments were made outside of the 30-day requirement. Cause: During the processing of the requests for payments, the Authority had difficulties with information provided which caused additional timing in processing payments. Effect: Subrecipients were not paid reimbursements in a timely manner as required. Questioned Costs: None. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: The Authority should implement a control structure to track when payment requests are received and notify staff when they are close to the 30-day requirement. Also, we recommend that information for the last date of payment, including correspondence on issues that arise with the information provided, be documented and retained. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Activities Allowed and Allowable Costs Significant Deficiency in Internal Controls Criteria: Uniform Guidance requires that payroll costs allocated to a program be based on actual time work based on proper support. Condition: In three instances, the amount reimbursed to subrecipients were paid out based on the persons paycheck stub showing allocation of hours which did not match backup provided for hours worked under the program, Cause: ESG employee used an amount that differed from the backup provided by subrecipient. Effect: Payments were either overpaid or underpaid to subrecipients. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: We recommend a review of the actual hours worked to ensure that proper amounts are reimbursed to the subrecipients. Views of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided COVID-19 Emergency Solutions Grant Program (ESG – CV) Emergency Solutions Grant Program (ESG) Special Tests and Provisions - Obligation, Expenditure and Payment Requirements Significant Deficiency in Internal Controls and Compliance Criteria: Section 24 CFR Section 576.203 requires that the grant recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: As part of our testing for the special tests and provisions compliance requirements, we selected a sample of 49 payments to subrecipients. Of the 49, eleven payments were made outside of the 30-day requirement. Cause: During the processing of the requests for payments, the Authority had difficulties with information provided which caused additional timing in processing payments. Effect: Subrecipients were not paid reimbursements in a timely manner as required. Questioned Costs: None. Context/Sampling: We tested 49 of the 241 payments. Repeat Finding from Prior Year(s): No Recommendation: The Authority should implement a control structure to track when payment requests are received and notify staff when they are close to the 30-day requirement. Also, we recommend that information for the last date of payment, including correspondence on issues that arise with the information provided, be documented and retained. Views of Responsible Officials: Management agrees with the finding.