FAC Explorer

Audit 34707

FY End
2022-12-31
Total Expended
$1.44M
Findings
2
Programs
1
Organization: Cicero Housing Authority (IL)
Year: 2022 Accepted: 2023-08-30
Auditor: Audit Solutions LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38848 2022-002 Significant Deficiency - L
615290 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $1.44M Yes 1

Contacts

Name Title Type
DCVDF7MJKPC4 Lillian Gutierrez Auditee
7086520386 Shoaib Khar Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Housing Authority of the Town of Cicero (Authority) under programs of the federal government for the year ended December 31, 2022. 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 of 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. NOTE 2 SUMMARY OF SIGNIFICANT 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. The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Deposits in Excess of FDIC & Pledged Securities Coverage. Criteria: All public funds on deposit at a financial institution should be safeguarded by either FDIC insurance or collateral pledged by the financial institution. Condition: I noted the following deficiency in bank collateral for funds on deposit as of December 31, 2022: Deposit Insured Deficient BMO Harris Bank $ 366,255 $ 250,000 $ (116,255) Questioned Costs: None noted. Effect: Authority?s funds in excess of the insured amount are vulnerable. Cause: The Authority did not monitor the balances of its accounts closely enough to ensure adequate protection of all funds. Recommendation: I recommend that the Authority periodically contact the bank to ensure all funds are fully secured. Management?s Response: - Cicero Housing will maintain deposits with the bank (BMO Harris) - The Bank (BMO Harris) will provide security as required by applicable law, regulation or rule per the third-party custodian agreement. The custodian (The Bank) agrees to provide safekeeping services and to hold any securities pledged by them in a custodial account established for the benefit of the secured party pursuant to the agreement signed. - The Director (Lillian Gutierrez) will maintain quarterly contact with our bank representative to verify fund balances are fully secure.
Finding 2022-002
Deposits in Excess of FDIC & Pledged Securities Coverage. Criteria: All public funds on deposit at a financial institution should be safeguarded by either FDIC insurance or collateral pledged by the financial institution. Condition: I noted the following deficiency in bank collateral for funds on deposit as of December 31, 2022: Deposit Insured Deficient BMO Harris Bank $ 366,255 $ 250,000 $ (116,255) Questioned Costs: None noted. Effect: Authority?s funds in excess of the insured amount are vulnerable. Cause: The Authority did not monitor the balances of its accounts closely enough to ensure adequate protection of all funds. Recommendation: I recommend that the Authority periodically contact the bank to ensure all funds are fully secured. Management?s Response: - Cicero Housing will maintain deposits with the bank (BMO Harris) - The Bank (BMO Harris) will provide security as required by applicable law, regulation or rule per the third-party custodian agreement. The custodian (The Bank) agrees to provide safekeeping services and to hold any securities pledged by them in a custodial account established for the benefit of the secured party pursuant to the agreement signed. - The Director (Lillian Gutierrez) will maintain quarterly contact with our bank representative to verify fund balances are fully secure.