FAC Explorer

Audit 35689

FY End
2022-12-31
Total Expended
$2.09M
Findings
2
Programs
2
Organization: Harrison Municipal Housing Authority (AR)
Year: 2022 Accepted: 2023-09-20
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34444 2022-002 Significant Deficiency - L
610886 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $2.08M Yes 1
14.879 Mainstream Vouchers $11,428 Yes 0

Contacts

Name Title Type
HL22JFT8NMR1 Chonda Tapley Auditee
8707418673 Chad Porter Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. Scope of PresentationThe accompanying schedule presents the expenditures incurred (and related awards received) by the Authority that are reimbursable under federal programs of federal agencies providing financial assistance awards. 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 or state reimbursement authorized or the portion of the program expenditures that were funded with, state, local or other nonfederal funds are excluded from the accompanying schedule.2. Basis of AccountingThe expenditures included in the accompanying schedule were reported on the 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.The Schedule was prepared from only the accounts of the grant programs and, therefore, does not present the financial position or results of operations of the Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
US Department of Housing and Urban Development Direct Award Program Name Section 8 Housing Choice Vouchers Significant Deficiency CFDA Number 14.871 2022-02 Reporting 2021-01 Repeat Finding Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Condition Management missed deadlines for its 2022 unaudited submissions again this year. Context Upon review of the unaudited FDS submission, we noted that the date of the submission was passed the due date. Cause Management was late in submitting its financial information to its fee accountant. This in part was caused by software changes that limited its ability to produce timely and reliable financial data. Effect For the unaudited submission, HUD will deduct 1 point from a PHA?s FASS score for every 15 days the submission is late with a maximum late penalty deduction of 5 points. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis and modifying its procedures to minimize its reliance on external spreadsheets for financial information. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan.
Finding 2022-002
US Department of Housing and Urban Development Direct Award Program Name Section 8 Housing Choice Vouchers Significant Deficiency CFDA Number 14.871 2022-02 Reporting 2021-01 Repeat Finding Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Condition Management missed deadlines for its 2022 unaudited submissions again this year. Context Upon review of the unaudited FDS submission, we noted that the date of the submission was passed the due date. Cause Management was late in submitting its financial information to its fee accountant. This in part was caused by software changes that limited its ability to produce timely and reliable financial data. Effect For the unaudited submission, HUD will deduct 1 point from a PHA?s FASS score for every 15 days the submission is late with a maximum late penalty deduction of 5 points. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis and modifying its procedures to minimize its reliance on external spreadsheets for financial information. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan.