FAC Explorer

Audit 333241

FY End
2024-03-31
Total Expended
$13.79M
Findings
2
Programs
3
Organization: Housing Authority of Elgin (IL)
Year: 2024 Accepted: 2024-12-17
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
515165 2024-001 - - N
1091607 2024-001 - - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $504,083 Yes 0
17.274 Youthbuild $187,270 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $87,883 - 0

Contacts

Name Title Type
L24UPAC1WED3 Martell Armstrong Auditee
8476084404 Tom Carr Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The above Schedule of Expenditures of Federal Awards includes the federal award activity of the Authority under programs of the federal government for the year ended March 31, 2024. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of operations of the Authority, it is not intended to and does not present the financial net position, changes in net position, or cash flows of the Authority.
Title: NOTE 3 - AWARDS PASSED-THROUGH TO 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. No federal award funds were passed through to subrecipient grantees during the year ended March 31, 2024.
Title: NOTE 4 - NON-MONETARY FEDERAL AWARDS 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 allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% De Minimus Indirect Cost Rate allowed under the Uniform Guidance. The Authority did not receive or expend non-monetary federal awards assistance during the year ended March 31, 2024.

Finding Details

Finding 2024-001
Criteria: PIH Notice 96-33 requires all funds in excess of FDIC coverage be collateralized with specific approved governmental securities held in the Authority’s name. Condition: The Authority did not have collateralization for $1,161,671 invested as of March 31, 2024, which was not insured by FDIC or invested in U.S. Treasury Obligations. There were no questioned costs applicable to this Finding. Potential Effect: Noncompliance with a federal requirement. Had there been a bank failure or theft, the Authority may not have recovered up to 1,161,671 of federal funds. Perspective Information: The Authority received its April 2024 housing assistance payments and administrative fees grants early, on March 29, 2024, totaling $1,161,671. The bank did not collateralize the deposits upon receipt, as of March 29, 2024. Recommendation: We recommend the Authority monitor their bank balances with financial institutions regularly to ensure the banks are sufficiently collateralizing the Authority’s deposits timely. Reply: The Authority’s Chief Executive Officer, Martell Armstrong, has assumed the responsibility of maintaining sufficient collateral and will ensure the monitoring of account balances regularly.
Finding 2024-001
Criteria: PIH Notice 96-33 requires all funds in excess of FDIC coverage be collateralized with specific approved governmental securities held in the Authority’s name. Condition: The Authority did not have collateralization for $1,161,671 invested as of March 31, 2024, which was not insured by FDIC or invested in U.S. Treasury Obligations. There were no questioned costs applicable to this Finding. Potential Effect: Noncompliance with a federal requirement. Had there been a bank failure or theft, the Authority may not have recovered up to 1,161,671 of federal funds. Perspective Information: The Authority received its April 2024 housing assistance payments and administrative fees grants early, on March 29, 2024, totaling $1,161,671. The bank did not collateralize the deposits upon receipt, as of March 29, 2024. Recommendation: We recommend the Authority monitor their bank balances with financial institutions regularly to ensure the banks are sufficiently collateralizing the Authority’s deposits timely. Reply: The Authority’s Chief Executive Officer, Martell Armstrong, has assumed the responsibility of maintaining sufficient collateral and will ensure the monitoring of account balances regularly.