FAC Explorer

Audit 360558

FY End
2024-12-31
Total Expended
$1.02M
Findings
2
Programs
4
Organization: Alma Housing Commission (MI)
Year: 2024 Accepted: 2025-06-29
Auditor: Weinlander Fitzhugh

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
568827 2024-001 - - N
1145269 2024-001 - - N

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $321,012 Yes 1
14.871 Section 8 Housing Choice Vouchers $272,144 Yes 0
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $195,260 - 0
14.872 Public Housing Capital Fund $92,721 - 0

Contacts

Name Title Type
TAFTFFP8JA19 Eric Schalm Auditee
9894634200 Samantha Cain Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 - RECONCILIATION OF REVENUE REPORTED IN THE FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of Alma Housing Commission under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) 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 Alma Housing Commission, it is not intended to and does not present the financial position or changes in net position of Alma Housing Commission. Expenditures reported on the Schedule are reported on the modified 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 (if any) shown on the Schedule represent adjustments or credit made in the normal course of business to amounts reported as expenditures. The Alma Housing Commission has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. The Alma Housing Commission does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: The Alma Housing Commission has elected not to use the 10 percent de minimus indirect cost rate to recover costs as allowed under the Uniform Guidance. See the Notes to the SEFA for chart/table

Finding Details

Finding 2024-001
Program Assistance Listing # 14.850 - Public Housing Operating Fund from Department of Housing and Urban Development (HUD) Criteria HUD requires all cash accounts to be federally insurance through FDIC or NCUA coverage. In order to monitor proper coverage the Housing Commission is required to maintain depository agreements with their financial institutions. As part of the depository agreement, the financial institution is to monitor cash accounts and inform the Housing Commission when they are reaching the FDIC or NCUA coverage threshold. Condition The Housing Commission has the proper depository agreements in place with all financial institutions. However, the cash amount in one of the financial institutions exceeds the federally insured threshold when considering the total cash deposited in the financial institution between the various programs. Questioned costs No questioned costs related to compliance finding. Context The Housing Commission relies on the financial institution to notify them when they are approaching the federally insured threshold. Effect The Housing Commission is exposed to a custodial credit risk and the potential for a loss. Cause The Housing Commission relied on the financial institution. The Housing Commission also had a misunderstanding with federal coverage requirements. The Housing Commission thought coverage was based on the different program's bank accounts and was not aware that federal coverage is based on the Housing Commission's EIN. Recommendation We recommend the Housing Commission move their funds to another financial institution to maintain proper FDIC or NCUA coverage. We also recommend the Housing Commission monitor's their bank accounts in order to confirm proper compliance requirements are being followed. Views of the Responsible Officials and Planned Corrective Action The Executive Director discussed federal coverage with the auditors and the financial institution to get a better understanding of FDIC and NCUA coverage. The Executive Director will monitor the bank accounts rather than strictly rely on the financial institutions. The Executive Director has moved the funds to another financial institution to be in fill compliance.
Finding 2024-001
Program Assistance Listing # 14.850 - Public Housing Operating Fund from Department of Housing and Urban Development (HUD) Criteria HUD requires all cash accounts to be federally insurance through FDIC or NCUA coverage. In order to monitor proper coverage the Housing Commission is required to maintain depository agreements with their financial institutions. As part of the depository agreement, the financial institution is to monitor cash accounts and inform the Housing Commission when they are reaching the FDIC or NCUA coverage threshold. Condition The Housing Commission has the proper depository agreements in place with all financial institutions. However, the cash amount in one of the financial institutions exceeds the federally insured threshold when considering the total cash deposited in the financial institution between the various programs. Questioned costs No questioned costs related to compliance finding. Context The Housing Commission relies on the financial institution to notify them when they are approaching the federally insured threshold. Effect The Housing Commission is exposed to a custodial credit risk and the potential for a loss. Cause The Housing Commission relied on the financial institution. The Housing Commission also had a misunderstanding with federal coverage requirements. The Housing Commission thought coverage was based on the different program's bank accounts and was not aware that federal coverage is based on the Housing Commission's EIN. Recommendation We recommend the Housing Commission move their funds to another financial institution to maintain proper FDIC or NCUA coverage. We also recommend the Housing Commission monitor's their bank accounts in order to confirm proper compliance requirements are being followed. Views of the Responsible Officials and Planned Corrective Action The Executive Director discussed federal coverage with the auditors and the financial institution to get a better understanding of FDIC and NCUA coverage. The Executive Director will monitor the bank accounts rather than strictly rely on the financial institutions. The Executive Director has moved the funds to another financial institution to be in fill compliance.