FAC Explorer

Audit 335313

FY End
2024-03-31
Total Expended
$2.82M
Findings
8
Programs
4
Organization: Williamston Housing Authority (NC)
Year: 2024 Accepted: 2024-12-31
Auditor: Gregory T Redman CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517306 2024-002 Significant Deficiency - L
517307 2024-003 Significant Deficiency - Eligibility
517308 2024-002 Significant Deficiency - L
517309 2024-004 Significant Deficiency - Eligibility
1093748 2024-002 Significant Deficiency - L
1093749 2024-003 Significant Deficiency - Eligibility
1093750 2024-002 Significant Deficiency - L
1093751 2024-004 Significant Deficiency - Eligibility

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $907,835 Yes 2
14.182 Section 8 New Construction and Substantial Rehabilitation $793,021 Yes 0
14.850 Public and Indian Housing $696,514 - 0
14.872 Public Housing Capital Fund $240,139 - 0

Contacts

Name Title Type
GXDQKSP3QVR8 Michael Gaddy Auditee
2527925889 Greg Redman Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the Williamston Housing Authority under the programs of the federal government for the year ended March 31, 2024. The information in this SEFA is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of Williamston Housing Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of Williamston Housing Authority. Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: no indirect costs. Williamston Housing Authority had the following loan balances outstanding at March 31, 2024 for loans that the grantor/pass-through grantor has still imposed continuing compliance requirements. Loans outstanding at the beginning of the year and loans made during the year are included in the SEFA. The balance of loans outstanding at March 31, 2024 consist of: Program Title: N/C S/R Section 8 Rural Housing Loan Assistance Number: 14.182 Pass-through Grantor's Number : Amount Outstanding: $762,733

Finding Details

Finding 2024-002
Significant Deficiency Finding: 2024-002 Criteria: In accordance with HUD guidelines, authorities are responsible for preparing and submitting an unaudited submission in REAC system withing two months after the year end. This Authority was required to submit this report by May 31, 2024. Statement of Condition: The REAC unaudited submission was not submitted until September 25, 2024. Questioned Cost: N/A Context: N/A Cause:Due to the challenges of the passing of the Finance officer during the year and operating short-staffed, the Authority did not provide all necessary documents to the fee accountant in a timely manner. Effect:HUD and REAC were not made aware of the financial condition of the Authority in a timely manner. Identification of a repeat finding: NO Recommendation: The Board and management should make every effort to address the issues that caused this condition. Views of responsible officials and planned corrective actions: The Authority agrees with this finding and will adhere to the correction action plan in this audit report.
Finding 2024-003
Finding: 2024-003Federal Agency:U. S. Department of Housing and Urban Development Federal program: N/C S/R Section 8 Program ALN #: 14.182 Award Period: 4/1/23-3/31/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 1 tenant file did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 1 tenant file did not contain a release of information signed by all adult members of the household. Cause:The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.
Finding 2024-002
Significant Deficiency Finding: 2024-002 Criteria: In accordance with HUD guidelines, authorities are responsible for preparing and submitting an unaudited submission in REAC system withing two months after the year end. This Authority was required to submit this report by May 31, 2024. Statement of Condition: The REAC unaudited submission was not submitted until September 25, 2024. Questioned Cost: N/A Context: N/A Cause:Due to the challenges of the passing of the Finance officer during the year and operating short-staffed, the Authority did not provide all necessary documents to the fee accountant in a timely manner. Effect:HUD and REAC were not made aware of the financial condition of the Authority in a timely manner. Identification of a repeat finding: NO Recommendation: The Board and management should make every effort to address the issues that caused this condition. Views of responsible officials and planned corrective actions: The Authority agrees with this finding and will adhere to the correction action plan in this audit report.
Finding 2024-004
Finding: 2024-004 Federal Agency:U. S. Department of Housing and Urban Development Federal program:Housing Choice Voucher ALN #: 14.871 Award Period: 4/1/23-3/31/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement:24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 2 tenant files did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 4 tenant files did not contain evidence of a current housing inspection as required. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect:The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: none Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.
Finding 2024-002
Significant Deficiency Finding: 2024-002 Criteria: In accordance with HUD guidelines, authorities are responsible for preparing and submitting an unaudited submission in REAC system withing two months after the year end. This Authority was required to submit this report by May 31, 2024. Statement of Condition: The REAC unaudited submission was not submitted until September 25, 2024. Questioned Cost: N/A Context: N/A Cause:Due to the challenges of the passing of the Finance officer during the year and operating short-staffed, the Authority did not provide all necessary documents to the fee accountant in a timely manner. Effect:HUD and REAC were not made aware of the financial condition of the Authority in a timely manner. Identification of a repeat finding: NO Recommendation: The Board and management should make every effort to address the issues that caused this condition. Views of responsible officials and planned corrective actions: The Authority agrees with this finding and will adhere to the correction action plan in this audit report.
Finding 2024-003
Finding: 2024-003Federal Agency:U. S. Department of Housing and Urban Development Federal program: N/C S/R Section 8 Program ALN #: 14.182 Award Period: 4/1/23-3/31/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 1 tenant file did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 1 tenant file did not contain a release of information signed by all adult members of the household. Cause:The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.
Finding 2024-002
Significant Deficiency Finding: 2024-002 Criteria: In accordance with HUD guidelines, authorities are responsible for preparing and submitting an unaudited submission in REAC system withing two months after the year end. This Authority was required to submit this report by May 31, 2024. Statement of Condition: The REAC unaudited submission was not submitted until September 25, 2024. Questioned Cost: N/A Context: N/A Cause:Due to the challenges of the passing of the Finance officer during the year and operating short-staffed, the Authority did not provide all necessary documents to the fee accountant in a timely manner. Effect:HUD and REAC were not made aware of the financial condition of the Authority in a timely manner. Identification of a repeat finding: NO Recommendation: The Board and management should make every effort to address the issues that caused this condition. Views of responsible officials and planned corrective actions: The Authority agrees with this finding and will adhere to the correction action plan in this audit report.
Finding 2024-004
Finding: 2024-004 Federal Agency:U. S. Department of Housing and Urban Development Federal program:Housing Choice Voucher ALN #: 14.871 Award Period: 4/1/23-3/31/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement:24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 2 tenant files did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 4 tenant files did not contain evidence of a current housing inspection as required. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect:The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: none Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.