2023-001 – Lack of Segregation of Duties
Criteria:
Internal control is a process, affected by the Housing Authority of the County of Monroe’s (the Authority) board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides for an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition:
Due to the limited employees and resources available to the Authority, many aspects of the internal control structure that rely on segregation of duties are missing. Specific accounting processes noted that are affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting, and specific reporting functions required for the Authority.
Cause:
Due to the limited number of personnel within the Authority, segregation of the accounting functions necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size of the Authority; however, management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting point of view.
Effect:
Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by personnel in the normal course of performing their assigned functions.
Recommendation:
We recommend that the Authority’s board of commissioners and management be aware of the lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials:
Management agrees with the finding.
2023-001 – Lack of Segregation of Duties
Criteria:
Internal control is a process, affected by the Housing Authority of the County of Monroe’s (the Authority) board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides for an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition:
Due to the limited employees and resources available to the Authority, many aspects of the internal control structure that rely on segregation of duties are missing. Specific accounting processes noted that are affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting, and specific reporting functions required for the Authority.
Cause:
Due to the limited number of personnel within the Authority, segregation of the accounting functions necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size of the Authority; however, management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting point of view.
Effect:
Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by personnel in the normal course of performing their assigned functions.
Recommendation:
We recommend that the Authority’s board of commissioners and management be aware of the lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials:
Management agrees with the finding.
Audit Finding 2023-002 – Reserve Account Deposits
Criteria:
In accordance with the Rural Development (RD) loan agreement, the Housing Authority is required to make deposits to the reserve for replacements account in an amount approved by RD. The Housing Authority is also required to have approval of withdrawals from the reserve account.
Condition:
During the year ended December 31, 2023, the Housing Authority did not make the required deposits to the reserve for replacements account as set forth by RD.
Cause:
Required reserve for replacement deposits were not made due to operating cash shortages.
Effect:
The Authority is not in compliance with the RD loan agreement.
Recommendation:
The Authority should transfer the required deposits to the reserve for replacement account as cash flow allows.
View of Responsible Officials:
Management agrees with the finding.
Audit Finding 2023-002 – Reserve Account Deposits
Criteria:
In accordance with the Rural Development (RD) loan agreement, the Housing Authority is required to make deposits to the reserve for replacements account in an amount approved by RD. The Housing Authority is also required to have approval of withdrawals from the reserve account.
Condition:
During the year ended December 31, 2023, the Housing Authority did not make the required deposits to the reserve for replacements account as set forth by RD.
Cause:
Required reserve for replacement deposits were not made due to operating cash shortages.
Effect:
The Authority is not in compliance with the RD loan agreement.
Recommendation:
The Authority should transfer the required deposits to the reserve for replacement account as cash flow allows.
View of Responsible Officials:
Management agrees with the finding.
2023-003 – Audited REAC Submission
Criteria:
HUD requires that all Public Housing Authorities submit their audited financial data on an annual basis. Per 24 CFR 902.33, audited financial statements will be required no later than nine months after the PHA’s fiscal year-end, in accordance with 2 CFR part 200.
Condition:
The audited financial reports were not submitted in a timely manner.
Cause:
The Authority had prior difficulties getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority did not have its financial reports submitted before the deadline leaving the Authority not in compliance with regulations, and at risk of losing points and funding.
Recommendation:
The Authority should submit financial reports in a timely manner going forward. The Authority’s financial records should be brought into compliance with HUD regulations.
View of Responsible Officials:
Management agrees with the finding.
2023-003 – Audited REAC Submission
Criteria:
HUD requires that all Public Housing Authorities submit their audited financial data on an annual basis. Per 24 CFR 902.33, audited financial statements will be required no later than nine months after the PHA’s fiscal year-end, in accordance with 2 CFR part 200.
Condition:
The audited financial reports were not submitted in a timely manner.
Cause:
The Authority had prior difficulties getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority did not have its financial reports submitted before the deadline leaving the Authority not in compliance with regulations, and at risk of losing points and funding.
Recommendation:
The Authority should submit financial reports in a timely manner going forward. The Authority’s financial records should be brought into compliance with HUD regulations.
View of Responsible Officials:
Management agrees with the finding.
Audit Finding 2023-005 – Federal Audit Clearinghouse Submission
Criteria:
2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds in a fiscal year to submit a data collection form by a due date that is the earlier of 30 calendar day after receipt of the auditor’s report(s) or nine months after the end of the audit period.
Condition:
The Authority’s December 31, 2023 audited financial statements were not filed within the Federal Audit Clearinghouse submission within 9 months of the Authority’s year-end.
Cause:
The Authority had prior difficulties in getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority is not in compliance with Uniform Guidance requirements.
Recommendation:
We recommend the Authority become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance.
Views of Responsible Official:
Management agrees with the finding.
Audit Finding 2023-005 – Federal Audit Clearinghouse Submission
Criteria:
2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds in a fiscal year to submit a data collection form by a due date that is the earlier of 30 calendar day after receipt of the auditor’s report(s) or nine months after the end of the audit period.
Condition:
The Authority’s December 31, 2023 audited financial statements were not filed within the Federal Audit Clearinghouse submission within 9 months of the Authority’s year-end.
Cause:
The Authority had prior difficulties in getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority is not in compliance with Uniform Guidance requirements.
Recommendation:
We recommend the Authority become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance.
Views of Responsible Official:
Management agrees with the finding.
2023-001 – Lack of Segregation of Duties
Criteria:
Internal control is a process, affected by the Housing Authority of the County of Monroe’s (the Authority) board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides for an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition:
Due to the limited employees and resources available to the Authority, many aspects of the internal control structure that rely on segregation of duties are missing. Specific accounting processes noted that are affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting, and specific reporting functions required for the Authority.
Cause:
Due to the limited number of personnel within the Authority, segregation of the accounting functions necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size of the Authority; however, management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting point of view.
Effect:
Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by personnel in the normal course of performing their assigned functions.
Recommendation:
We recommend that the Authority’s board of commissioners and management be aware of the lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials:
Management agrees with the finding.
2023-001 – Lack of Segregation of Duties
Criteria:
Internal control is a process, affected by the Housing Authority of the County of Monroe’s (the Authority) board of commissioners, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. A good system of internal control provides for an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition:
Due to the limited employees and resources available to the Authority, many aspects of the internal control structure that rely on segregation of duties are missing. Specific accounting processes noted that are affected by the lack of segregation of duties include: cash disbursements, payroll disbursements, cash receipting, and specific reporting functions required for the Authority.
Cause:
Due to the limited number of personnel within the Authority, segregation of the accounting functions necessary to ensure adequate internal accounting control is not possible. This is not unusual in operations the size of the Authority; however, management should constantly be aware of this condition and realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable from an accounting point of view.
Effect:
Inadequate segregation of duties could adversely affect the Authority’s ability to detect misstatements in amounts that would be material in relation to the financial statements in a timely period by personnel in the normal course of performing their assigned functions.
Recommendation:
We recommend that the Authority’s board of commissioners and management be aware of the lack of segregation of the accounting functions and, where possible, implement oversight procedures to ensure the internal control policies and procedures are being implemented by personnel to the extent possible.
View of Responsible Officials:
Management agrees with the finding.
Audit Finding 2023-002 – Reserve Account Deposits
Criteria:
In accordance with the Rural Development (RD) loan agreement, the Housing Authority is required to make deposits to the reserve for replacements account in an amount approved by RD. The Housing Authority is also required to have approval of withdrawals from the reserve account.
Condition:
During the year ended December 31, 2023, the Housing Authority did not make the required deposits to the reserve for replacements account as set forth by RD.
Cause:
Required reserve for replacement deposits were not made due to operating cash shortages.
Effect:
The Authority is not in compliance with the RD loan agreement.
Recommendation:
The Authority should transfer the required deposits to the reserve for replacement account as cash flow allows.
View of Responsible Officials:
Management agrees with the finding.
Audit Finding 2023-002 – Reserve Account Deposits
Criteria:
In accordance with the Rural Development (RD) loan agreement, the Housing Authority is required to make deposits to the reserve for replacements account in an amount approved by RD. The Housing Authority is also required to have approval of withdrawals from the reserve account.
Condition:
During the year ended December 31, 2023, the Housing Authority did not make the required deposits to the reserve for replacements account as set forth by RD.
Cause:
Required reserve for replacement deposits were not made due to operating cash shortages.
Effect:
The Authority is not in compliance with the RD loan agreement.
Recommendation:
The Authority should transfer the required deposits to the reserve for replacement account as cash flow allows.
View of Responsible Officials:
Management agrees with the finding.
2023-003 – Audited REAC Submission
Criteria:
HUD requires that all Public Housing Authorities submit their audited financial data on an annual basis. Per 24 CFR 902.33, audited financial statements will be required no later than nine months after the PHA’s fiscal year-end, in accordance with 2 CFR part 200.
Condition:
The audited financial reports were not submitted in a timely manner.
Cause:
The Authority had prior difficulties getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority did not have its financial reports submitted before the deadline leaving the Authority not in compliance with regulations, and at risk of losing points and funding.
Recommendation:
The Authority should submit financial reports in a timely manner going forward. The Authority’s financial records should be brought into compliance with HUD regulations.
View of Responsible Officials:
Management agrees with the finding.
2023-003 – Audited REAC Submission
Criteria:
HUD requires that all Public Housing Authorities submit their audited financial data on an annual basis. Per 24 CFR 902.33, audited financial statements will be required no later than nine months after the PHA’s fiscal year-end, in accordance with 2 CFR part 200.
Condition:
The audited financial reports were not submitted in a timely manner.
Cause:
The Authority had prior difficulties getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority did not have its financial reports submitted before the deadline leaving the Authority not in compliance with regulations, and at risk of losing points and funding.
Recommendation:
The Authority should submit financial reports in a timely manner going forward. The Authority’s financial records should be brought into compliance with HUD regulations.
View of Responsible Officials:
Management agrees with the finding.
Audit Finding 2023-005 – Federal Audit Clearinghouse Submission
Criteria:
2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds in a fiscal year to submit a data collection form by a due date that is the earlier of 30 calendar day after receipt of the auditor’s report(s) or nine months after the end of the audit period.
Condition:
The Authority’s December 31, 2023 audited financial statements were not filed within the Federal Audit Clearinghouse submission within 9 months of the Authority’s year-end.
Cause:
The Authority had prior difficulties in getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority is not in compliance with Uniform Guidance requirements.
Recommendation:
We recommend the Authority become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance.
Views of Responsible Official:
Management agrees with the finding.
Audit Finding 2023-005 – Federal Audit Clearinghouse Submission
Criteria:
2 CFR §200.512 of the Uniform Guidance requires an entity expending more than $750,000 of federal funds in a fiscal year to submit a data collection form by a due date that is the earlier of 30 calendar day after receipt of the auditor’s report(s) or nine months after the end of the audit period.
Condition:
The Authority’s December 31, 2023 audited financial statements were not filed within the Federal Audit Clearinghouse submission within 9 months of the Authority’s year-end.
Cause:
The Authority had prior difficulties in getting their 2022 audit completed. As a result, the 2023 audit was not able to start on time and was not able to be completed before the reporting deadline.
Effect:
The Authority is not in compliance with Uniform Guidance requirements.
Recommendation:
We recommend the Authority become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance.
Views of Responsible Official:
Management agrees with the finding.