FAC Explorer

Audit 350466

FY End
2024-06-30
Total Expended
$871,380
Findings
4
Programs
2
Organization: Newbern Housing Authority (TN)
Year: 2024 Accepted: 2025-03-31
Auditor: Crs CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
540829 2024-001 Significant Deficiency - A
540830 2024-002 - - H
1117271 2024-001 Significant Deficiency - A
1117272 2024-002 - - H

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $461,962 Yes 2
14.850 Public Housing Operating Fund $409,418 - 0

Contacts

Name Title Type
SCRBBQA8K2M1 David Jones Auditee
7316272142 Katie Little Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Scope of Presentation -The accompanying schedule presents the expenditures incurred (and related awards received) by Newbern Housing Authority (Authority) that are reimbursed under federal programs of federal agencies providing financial assistance. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting - The expenditures included in the accompanying schedule were prepared on an accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Newbern Housing 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: Scope of Presentation -The accompanying schedule presents the expenditures incurred (and related awards received) by Newbern Housing Authority (Authority) that are reimbursed under federal programs of federal agencies providing financial assistance. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting - The expenditures included in the accompanying schedule were prepared on an accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. Newbern Housing Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
2024-001 Excess Reimbursement Requested (Public Housing Capital Fund - ALN 14.872) – Significant Deficiency and Noncompliance: Finding: An instance of nonsupported expenditures was reported and reimbursed by the granting agency. Criteria: The Authority should only request reimbursements for funds they have expended for capital fund monies. Cause: The Authority's Executive Director drew down funds remaining in Capital Funds Project Number TN40P075501-20 (CFP-20) to close out the project, then subsequently drew down funds remaining in Capital Funds Project Number TN40P075501-21 (CFP-21) to close out the project for the same invoice. When the request for reimbursement from CFP-21 was made, no consideration was given for the amount already requested from CFP-20 at close out. Effect: The Authority received approximately $334.75 in excess of expenditures for capital fund projects that are considered questionable costs. Recommendation: All requests for reimbursement of capital funds should have supporting documentation and management should implement a safety measure to ensure duplicate requests aren't made for a single invoice, especially at grant close out. Management’s Response: We concur with this finding.
Finding 2024-002
2024-002 Budget Line Item Improper Expenditures (Public Housing Capital Fund - ALN 14.872) – Noncompliance Finding: Funds for Capital Funds Project Number TN40P075501-22 were transferred from Budget Line Item (BLI) 1480, General Capital Activity to BLI 1406, Operations and subsequently expended for general capital activity without amending the 5-Year Action Plan/budget. Criteria: The Authority should amend their 5-Year Action Plan/budget for any changes made during any given year per HUD compliance requirements. Cause: The Authority's Executive Director drew down funds remaining in Capital Funds Project Number TN40P075501-22 (CFP-22) to close out the project. To do this the Authority amended the budget to move the line item from General Capital Activity to Operations per HUD requirements. The Authority subsequently spent the funds on General Capital Activity and not for Operations as budgeted, and no additional amendment was made to the Budget in the Authority's 5-Year Action Plan. Effect: Funds expended were not spent in compliance with the Authority's 5-Year Action plan. Recommendation: All changes to the manner in which Capital Fund Project monies are spent need to be approved by HUD in the budget amendment process. Management’s Response: We concur with this finding.
Finding 2024-001
2024-001 Excess Reimbursement Requested (Public Housing Capital Fund - ALN 14.872) – Significant Deficiency and Noncompliance: Finding: An instance of nonsupported expenditures was reported and reimbursed by the granting agency. Criteria: The Authority should only request reimbursements for funds they have expended for capital fund monies. Cause: The Authority's Executive Director drew down funds remaining in Capital Funds Project Number TN40P075501-20 (CFP-20) to close out the project, then subsequently drew down funds remaining in Capital Funds Project Number TN40P075501-21 (CFP-21) to close out the project for the same invoice. When the request for reimbursement from CFP-21 was made, no consideration was given for the amount already requested from CFP-20 at close out. Effect: The Authority received approximately $334.75 in excess of expenditures for capital fund projects that are considered questionable costs. Recommendation: All requests for reimbursement of capital funds should have supporting documentation and management should implement a safety measure to ensure duplicate requests aren't made for a single invoice, especially at grant close out. Management’s Response: We concur with this finding.
Finding 2024-002
2024-002 Budget Line Item Improper Expenditures (Public Housing Capital Fund - ALN 14.872) – Noncompliance Finding: Funds for Capital Funds Project Number TN40P075501-22 were transferred from Budget Line Item (BLI) 1480, General Capital Activity to BLI 1406, Operations and subsequently expended for general capital activity without amending the 5-Year Action Plan/budget. Criteria: The Authority should amend their 5-Year Action Plan/budget for any changes made during any given year per HUD compliance requirements. Cause: The Authority's Executive Director drew down funds remaining in Capital Funds Project Number TN40P075501-22 (CFP-22) to close out the project. To do this the Authority amended the budget to move the line item from General Capital Activity to Operations per HUD requirements. The Authority subsequently spent the funds on General Capital Activity and not for Operations as budgeted, and no additional amendment was made to the Budget in the Authority's 5-Year Action Plan. Effect: Funds expended were not spent in compliance with the Authority's 5-Year Action plan. Recommendation: All changes to the manner in which Capital Fund Project monies are spent need to be approved by HUD in the budget amendment process. Management’s Response: We concur with this finding.