FAC Explorer

Audit 328424

FY End
2024-03-31
Total Expended
$8.92M
Findings
4
Programs
4
Organization: Winnebago County Housing Authority (IL)
Year: 2024 Accepted: 2024-11-14
Auditor: Rector Reeder & Lofton PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
507891 2024-001 Significant Deficiency - E
507892 2024-001 Significant Deficiency - E
1084333 2024-001 Significant Deficiency - E
1084334 2024-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.881 Moving to Work Demonstration Program $6.20M Yes 1
14.879 Mainstream Vouchers $994,987 Yes 0
14.896 Family Self-Sufficiency Program $270,143 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $57,571 - 0

Contacts

Name Title Type
NHZZNNWMW5G3 Vickie Huwe Auditee
8159632133 Dale R. Rector 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority did not elect 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 March 31, 2024. 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 assets, or cash flows of the Authority.
Title: SUBRECIPIENTS 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority provided no federal awards to subrecipients during the fiscal year ending March 31, 2024.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE 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. 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. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Winnebago County Housing Authority received no federal awards of non-monetary assistance that are required to be disclosed for the year ended March 31, 2024. The Winnebago County Housing Authority had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended March 31, 2024. The Winnebago County Housing Authority maintains the following limits of insurance as of March 31, 2024: Property $ 12,008,035 Liability $ 1,000,000 Business Auto Liability $ 1,000,000 Worker Compensation Statutory Public Officials Liability $ 1,000,000 Employee Dishonesty $ 500,000 Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2024-001
Finding 2024-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - Subsidy ALN 14.881 Condition & Cause: During the review of sixty (60) tenant files from the Moving to Work program, six (6) files, or 10%, were found to be noncompliant regarding the verification and/or calculation of adjusted annual income. Some files contained multiple instances of noncompliance, including • Four (4) instances in which the income verification was missing or did not agree to what was reported on the form 50058 • Three (3) instances of improper verification or reporting of deductions • One (1) instance in which income was improperly excluded • One (1) instance in which annual wages were projected using the Incorrect pay frequency Using extrapolation, we were able to determine that the potential misstatement of subsidy is immaterial to the financial statements. Criteria: The Code of Federal regulations, the Housing Authority's ACOP, Admin Plan, MTW Plan, and specific HUD guidelines in documenting and maintaining the Public Housing and Housing Choice Voucher tenant files. Effect: The absence of proper income verification and the presence of miscalculations can lead to noncompliance with federal regulations governing the MTW program, inaccurate rent determinations potentially resulting in overpayments or underpayments by tenants, and increased risk of financial penalties or loss of funding for the program. Recommendation: We recommend that the Authority conduct a thorough review of tenant files to determine the extent of noncompliance and establish a schedule for regular internal audits of tenant files to ensure compliance with verification requirements and accurate income calculations. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2024-001
Finding 2024-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - Subsidy ALN 14.881 Condition & Cause: During the review of sixty (60) tenant files from the Moving to Work program, six (6) files, or 10%, were found to be noncompliant regarding the verification and/or calculation of adjusted annual income. Some files contained multiple instances of noncompliance, including • Four (4) instances in which the income verification was missing or did not agree to what was reported on the form 50058 • Three (3) instances of improper verification or reporting of deductions • One (1) instance in which income was improperly excluded • One (1) instance in which annual wages were projected using the Incorrect pay frequency Using extrapolation, we were able to determine that the potential misstatement of subsidy is immaterial to the financial statements. Criteria: The Code of Federal regulations, the Housing Authority's ACOP, Admin Plan, MTW Plan, and specific HUD guidelines in documenting and maintaining the Public Housing and Housing Choice Voucher tenant files. Effect: The absence of proper income verification and the presence of miscalculations can lead to noncompliance with federal regulations governing the MTW program, inaccurate rent determinations potentially resulting in overpayments or underpayments by tenants, and increased risk of financial penalties or loss of funding for the program. Recommendation: We recommend that the Authority conduct a thorough review of tenant files to determine the extent of noncompliance and establish a schedule for regular internal audits of tenant files to ensure compliance with verification requirements and accurate income calculations. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2024-001
Finding 2024-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - Subsidy ALN 14.881 Condition & Cause: During the review of sixty (60) tenant files from the Moving to Work program, six (6) files, or 10%, were found to be noncompliant regarding the verification and/or calculation of adjusted annual income. Some files contained multiple instances of noncompliance, including • Four (4) instances in which the income verification was missing or did not agree to what was reported on the form 50058 • Three (3) instances of improper verification or reporting of deductions • One (1) instance in which income was improperly excluded • One (1) instance in which annual wages were projected using the Incorrect pay frequency Using extrapolation, we were able to determine that the potential misstatement of subsidy is immaterial to the financial statements. Criteria: The Code of Federal regulations, the Housing Authority's ACOP, Admin Plan, MTW Plan, and specific HUD guidelines in documenting and maintaining the Public Housing and Housing Choice Voucher tenant files. Effect: The absence of proper income verification and the presence of miscalculations can lead to noncompliance with federal regulations governing the MTW program, inaccurate rent determinations potentially resulting in overpayments or underpayments by tenants, and increased risk of financial penalties or loss of funding for the program. Recommendation: We recommend that the Authority conduct a thorough review of tenant files to determine the extent of noncompliance and establish a schedule for regular internal audits of tenant files to ensure compliance with verification requirements and accurate income calculations. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2024-001
Finding 2024-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - Subsidy ALN 14.881 Condition & Cause: During the review of sixty (60) tenant files from the Moving to Work program, six (6) files, or 10%, were found to be noncompliant regarding the verification and/or calculation of adjusted annual income. Some files contained multiple instances of noncompliance, including • Four (4) instances in which the income verification was missing or did not agree to what was reported on the form 50058 • Three (3) instances of improper verification or reporting of deductions • One (1) instance in which income was improperly excluded • One (1) instance in which annual wages were projected using the Incorrect pay frequency Using extrapolation, we were able to determine that the potential misstatement of subsidy is immaterial to the financial statements. Criteria: The Code of Federal regulations, the Housing Authority's ACOP, Admin Plan, MTW Plan, and specific HUD guidelines in documenting and maintaining the Public Housing and Housing Choice Voucher tenant files. Effect: The absence of proper income verification and the presence of miscalculations can lead to noncompliance with federal regulations governing the MTW program, inaccurate rent determinations potentially resulting in overpayments or underpayments by tenants, and increased risk of financial penalties or loss of funding for the program. Recommendation: We recommend that the Authority conduct a thorough review of tenant files to determine the extent of noncompliance and establish a schedule for regular internal audits of tenant files to ensure compliance with verification requirements and accurate income calculations. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.