FAC Explorer

Audit 358169

FY End
2024-09-30
Total Expended
$3.04M
Findings
4
Programs
3
Organization: Housing Authority of the City of Dodge City (KS)
Year: 2024 Accepted: 2025-06-05
Auditor: Audit Solutions LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564008 2024-003 Significant Deficiency Yes P
564009 2024-004 Significant Deficiency Yes P
1140450 2024-003 Significant Deficiency Yes P
1140451 2024-004 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $1.83M - 0
14.850 Public and Indian Housing $900,564 Yes 2
14.871 Section 8 Housing Choice Vouchers $307,724 - 0

Contacts

Name Title Type
J9X4L2R28VE7 Darren Basgall Auditee
6202251965 Shoaib Khar Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Housing Authority of the City of Dodge City, Kansas (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 of 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 position, or cash flows of the Authority. NOTE 2 – SUMMARY OF SIGNIFICANT 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. NOTE 3 – SOURCES OF FUNDING The schedule includes all grants and contracts entered into directly between the Authority and agencies and departments of the federal government, as well as federal funds passed through to the Authority by primary recipients. The Authority provided no part of its direct grant federal dollars to sub-recipients. NOTE 4 – SUB-RECIPIENTS There were no sub-recipients for the year ended September 30, 2024. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-003
2024-003. Tenant Accounts Receivable Criteria: Under the terms of the annual contributions contract, each project shall be developed and administered to promote efficiency, economy and stability. Condition: I noted tenant accounts receivable at year end was $72,324 (excluding vacated and tenants who have signed a repayment agreement) which represents 110% of the total charges for the month of September 2024. Questioned Costs: None noted. Effect: The continuing growth in tenant accounts receivable is a threat to maintaining a financially solvent operation. Without proper rent collection, current operating expenses cannot be paid. Cause: The Authority did not effectively enforce its rent collection policy resulting in a significant amount being owed to the Authority. Recommendation: I recommend that the Authority place greater emphasis on the collection of all outstanding balances. Management’s Response: We have new personnel in place to assist Mr. Carmona with rent collection and securing repayment agreements on all arrearages. This will take care if the finding this fiscal year and in years to come.
Finding 2024-004
2024-004. Significant Audit Adjustments Criteria: The Authority should take the steps necessary to ensure accuracy and completeness of the financial statements. Condition: This audit required a number of significant adjusting journal entries. These entries were necessary because certain unadjusted general ledger accounts were incorrect and/or not recorded correctly. Questioned Costs: None noted. Effect: The PHA’s financial statements before any adjusting entries contained errors and/or were not properly recorded. Cause: This appears to be an oversight by the Authority. Recommendation: I recommend that the Authority exercise more care in processing and recording transactions and that more care be taken to ensure the completeness of financial reporting. Management’s Response: A new Executive Director was hired on 4-1-2025. He will be looking into the possibility of changing Fee Accountants. Although, prior E.D. had a rudimentary idea of accounting principles, he hired Lindsey to take care of our accounting as per HUD requirements. Another Fee Accountant paying more attention to detail, will be in our best interest.
Finding 2024-003
2024-003. Tenant Accounts Receivable Criteria: Under the terms of the annual contributions contract, each project shall be developed and administered to promote efficiency, economy and stability. Condition: I noted tenant accounts receivable at year end was $72,324 (excluding vacated and tenants who have signed a repayment agreement) which represents 110% of the total charges for the month of September 2024. Questioned Costs: None noted. Effect: The continuing growth in tenant accounts receivable is a threat to maintaining a financially solvent operation. Without proper rent collection, current operating expenses cannot be paid. Cause: The Authority did not effectively enforce its rent collection policy resulting in a significant amount being owed to the Authority. Recommendation: I recommend that the Authority place greater emphasis on the collection of all outstanding balances. Management’s Response: We have new personnel in place to assist Mr. Carmona with rent collection and securing repayment agreements on all arrearages. This will take care if the finding this fiscal year and in years to come.
Finding 2024-004
2024-004. Significant Audit Adjustments Criteria: The Authority should take the steps necessary to ensure accuracy and completeness of the financial statements. Condition: This audit required a number of significant adjusting journal entries. These entries were necessary because certain unadjusted general ledger accounts were incorrect and/or not recorded correctly. Questioned Costs: None noted. Effect: The PHA’s financial statements before any adjusting entries contained errors and/or were not properly recorded. Cause: This appears to be an oversight by the Authority. Recommendation: I recommend that the Authority exercise more care in processing and recording transactions and that more care be taken to ensure the completeness of financial reporting. Management’s Response: A new Executive Director was hired on 4-1-2025. He will be looking into the possibility of changing Fee Accountants. Although, prior E.D. had a rudimentary idea of accounting principles, he hired Lindsey to take care of our accounting as per HUD requirements. Another Fee Accountant paying more attention to detail, will be in our best interest.