Audit 356680

FY End
2024-09-30
Total Expended
$3.46M
Findings
2
Programs
4
Year: 2024 Accepted: 2025-05-20

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
561071 2024-001 Significant Deficiency - N
1137513 2024-001 Significant Deficiency - N

Programs

Contacts

Name Title Type
TW8QZBNJUBL4 Annette Carper Auditee
3098372363 Dale R. Rector Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Authority under programs of the federal government for the year ended September 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 Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
Title: INDIRECT COST RATE 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Authority did not elect to use the 10% de minimis cost rate.
Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis cost rate. The Housing Authority of McDonough County received no federal awards of non-monetary assistance that are required to be disclosed for the year ended September 30, 2024. The Housing Authority of McDonough County had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended September 30, 2024. The Housing Authority of McDonough County maintains the following limits of insurance as of September 30, 2024: Property $ 25,000,000 Liability $ 1,000,000 Business Auto Liability $ 1,000,000 Worker Compensation Statutory Public Officials Liability $ 1,000,000 Employee Dishonesty $ 50,000 Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2024-001 – Special Tests and Provisions, SEMAP reporting – ALN 14.871 – Significant Deficiency & Other Matter Criteria: 24 CFR Part 985.3 states that PHAs “must leave a clear audit trail that can be used to verify that the PHA’s quality control sample was drawn in an unbiased manner.” Condition & cause: The PHA received a score of 100% on its 2024 SEMAP certification. However, the PHA was unable to produce documentation to support the scores that were given. We determined that the PHA has failed to maintain adequate records to provide a clear audit trail in relation to SEMAP. Effect: The SEMAP certification provides HUD with a system to evaluate a PHA’s Section 8 performance. Failure to provide proper supporting documentation can lead to ineffective measurements of Authority performance, as well as its ability to meet the needs of eligible families. Furthermore, misleading SEMAP certifications can disguise a troubled agency who may need HUD intervention. Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification. We also recommend that the PHA establish control systems to ensure SEMAP documentation is adequately gathered to support its submission in the future. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes
Finding 2024-001 – Special Tests and Provisions, SEMAP reporting – ALN 14.871 – Significant Deficiency & Other Matter Criteria: 24 CFR Part 985.3 states that PHAs “must leave a clear audit trail that can be used to verify that the PHA’s quality control sample was drawn in an unbiased manner.” Condition & cause: The PHA received a score of 100% on its 2024 SEMAP certification. However, the PHA was unable to produce documentation to support the scores that were given. We determined that the PHA has failed to maintain adequate records to provide a clear audit trail in relation to SEMAP. Effect: The SEMAP certification provides HUD with a system to evaluate a PHA’s Section 8 performance. Failure to provide proper supporting documentation can lead to ineffective measurements of Authority performance, as well as its ability to meet the needs of eligible families. Furthermore, misleading SEMAP certifications can disguise a troubled agency who may need HUD intervention. Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification. We also recommend that the PHA establish control systems to ensure SEMAP documentation is adequately gathered to support its submission in the future. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes