FAC Explorer

Audit 351920

FY End
2024-06-30
Total Expended
$891,239
Findings
2
Programs
4
Organization: Halstead Housing Authority (KS)
Year: 2024 Accepted: 2025-03-31
Auditor: Urlaub & CO PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
548011 2024-004 Significant Deficiency - L
1124453 2024-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $596,872 Yes 1
14.872 Public Housing Capital Fund $138,788 - 0
14.850 Public Housing Operating Fund $116,290 - 0
14.195 Project-Based Rental Assistance (pbra) $39,289 - 0

Contacts

Name Title Type
M3Q3BBBUACL3 Dawnena Davidson Auditee
3168352026 Ronald Urlaub Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Full Accrual De Minimis Rate Used: N Rate Explanation: The Authority did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Housing Authority of the City of Halstead under programs of the federal government for the year ended June 30, 2024. 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Housing Authority of the City of Halstead, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Housing Authority of the City of Halstead.
Title: Summary of Signficant Accounting Policies Accounting Policies: Full Accrual De Minimis Rate Used: N Rate Explanation: The Authority did not use the de minimis cost rate. 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.
Title: Indirect Cost Rate Accounting Policies: Full Accrual De Minimis Rate Used: N Rate Explanation: The Authority did not use the de minimis cost rate. The Housing Authority of the City of Halstead, Kansas has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Loans Outstanding Accounting Policies: Full Accrual De Minimis Rate Used: N Rate Explanation: The Authority did not use the de minimis cost rate. The Housing Authority of the City of Halstead, Kansas, had the following loan balance outstanding at June 30, 2024. Subsidy provided by the Rural Rental Housing Loan Program is listed in the above Schedule of Expenditures of Federal Awards. US. Department of Agriculture - Rural Development - Rural Rental Housing Loan Program 10.415 Amount Outstanding $575,496.

Finding Details

Finding 2024-004
Condition: The financial statements and the Financial Data Schedule submitted to REAC had several material misstatements and were not prepared in accordance with Generally Accepted Accounting Principles (GAAP. Criteria: Internal controls should be in place to ensure that financial statements are prepared materially free from errors. Context: During our review of the financial statements, we noted the following issues that were inconsistent in the preparation of the financial statements and the Financial Data Schedule: materials inventory was not adjusted at year end; accrued leave was not adjusted at year end; additional accounts payables were not accrued as of the year end; balances related to the RD mortgage was not recorded; CASBG 68 pension entry not recorded; GASB 87 & 96 entries related to leases and subscription contracts were not recorded. Effect: The misstatement of account balances resulted in the preparation of financial statements with material errors. The financial statements could not be relied upon for the fair presentation of the financial position of the Authority. Recommendation: It is recommended that proper internal controls be established to ensure proper processsing and reporting of financial statements materially free from errors. Response: We will implement internal controls to follow up with the Fee accountant at FYE to be certain they are preparing materials in accordance with Generally Accepted Accounting Principles (GAAP).
Finding 2024-004
Condition: The financial statements and the Financial Data Schedule submitted to REAC had several material misstatements and were not prepared in accordance with Generally Accepted Accounting Principles (GAAP. Criteria: Internal controls should be in place to ensure that financial statements are prepared materially free from errors. Context: During our review of the financial statements, we noted the following issues that were inconsistent in the preparation of the financial statements and the Financial Data Schedule: materials inventory was not adjusted at year end; accrued leave was not adjusted at year end; additional accounts payables were not accrued as of the year end; balances related to the RD mortgage was not recorded; CASBG 68 pension entry not recorded; GASB 87 & 96 entries related to leases and subscription contracts were not recorded. Effect: The misstatement of account balances resulted in the preparation of financial statements with material errors. The financial statements could not be relied upon for the fair presentation of the financial position of the Authority. Recommendation: It is recommended that proper internal controls be established to ensure proper processsing and reporting of financial statements materially free from errors. Response: We will implement internal controls to follow up with the Fee accountant at FYE to be certain they are preparing materials in accordance with Generally Accepted Accounting Principles (GAAP).