FAC Explorer

Audit 350707

FY End
2023-06-30
Total Expended
$6.23M
Findings
2
Programs
4
Organization: Housing Authority of Covington (KY)
Year: 2023 Accepted: 2025-03-31
Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
541798 2023-002 Material Weakness - E
1118240 2023-002 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $3.97M Yes 1
14.872 Public Housing Capital Fund $2.14M - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $90,942 - 0
14.896 Family Self-Sufficiency Program $37,716 - 0

Contacts

Name Title Type
G573QX9V6RF9 Pam Stephens Auditee
8592922186 Rich Larsen Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the Authority under programs of the federal government for the year ended June 30, 2023. The information in the 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Authority, it is not intended to and does not present the net position, changes in net position or cash flows of the Authority. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the financial statements. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: INDIRECT COST RATE The Authority has not elected to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Assisted Listing Number: 14.850 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were files in which the verification of income eligibility was not properly performed. Context: Of a sample size of twenty (20) tenant files, two (2) files had income which was not properly calculated and verified. Our sample size is statistically valid. Known Questioned Costs: $10,806 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Authority Response: The Authority agrees with the finding and is in process of assessing and modifying controls over compliance to avoid similar issues. The Authority will increase oversight of the compliance of program.
Finding 2023-002
Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Assisted Listing Number: 14.850 Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were files in which the verification of income eligibility was not properly performed. Context: Of a sample size of twenty (20) tenant files, two (2) files had income which was not properly calculated and verified. Our sample size is statistically valid. Known Questioned Costs: $10,806 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Authority Response: The Authority agrees with the finding and is in process of assessing and modifying controls over compliance to avoid similar issues. The Authority will increase oversight of the compliance of program.