FAC Explorer

Audit 360859

FY End
2024-09-30
Total Expended
$9.85M
Findings
6
Programs
3
Organization: Housing Authority of the City of Deerfield Beach (FL)
Year: 2024 Accepted: 2025-06-30
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
569370 2024-001 Significant Deficiency Yes L
569371 2024-002 Significant Deficiency Yes A
569372 2024-003 Significant Deficiency - AB
1145812 2024-001 Significant Deficiency Yes L
1145813 2024-002 Significant Deficiency Yes A
1145814 2024-003 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $9.15M Yes 3
14.879 Mainstream Vouchers $613,232 Yes 0
14.896 Family Self-Sufficiency Program $86,709 - 0

Contacts

Name Title Type
LKB2GSBL4Q24 Latonya Coley Auditee
9544280678 Chad Porter Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: SCOPE OF PRESENTATION Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is 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 local or other nonfederal funds are excluded from the accompanying schedule. The 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 information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is 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 local or other nonfederal funds are excluded from the accompanying schedule.
Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is 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 local or other nonfederal funds are excluded from the accompanying schedule. The 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 information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The 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 information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
Title: NOTE 3: 10% DE MINIMIS INDIRECT COST RATE Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Deerfield (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is 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 local or other nonfederal funds are excluded from the accompanying schedule. The 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 information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audit of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414. The Authority elected not to use the 10% de minims indirect cost rate as allowed in the Uniform Guidance, section 414.

Finding Details

Finding 2024-001
US Department of Housing and Urban Development Direct Award Program Name: Housing Voucher Center Cluster Internal Control Significant Deficiency L Reporting AL Number: 14.871 2024-001 Unaudited Submission Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition: Management missed the deadline for its unaudited REAC FDS submission. Context: The Authority 's unaudited FDS submission was due on December 15th, 2024. The Authority did not submit the submission until February 2025. Cause: Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect: The Authority is not in compliance with the reporting guidelines outlined in the HCV compliance supplement. Recommendations: The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views: Management agrees with the finding, see Management's Corrective Action Plan.
Finding 2024-002
Program Name: Housing Voucher Center Cluster Internal Control Significant Deficiency A Allowable Exp AL Number: 14.871 2024-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria: According to HUD Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition: The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context: The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause: The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect: The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations: The Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views: Management agrees with the finding, see Management's Corrective Action Plan.
Finding 2024-003
Program Name Housing Choice Voucher Internal Control Significant Deficiency A/B Allowable Activities; Allowable costs/Cost principles CFDA Number 14.871 2024-003 FSS Liability and Insufficient Cash Questioned Costs $11,990. Amount restricted cash is short covering FSS liability. Criteria "HUD’s FSS Program Regulations (24 CFR 984.305): Specifically for the FSS program, this regulation governs the management of FSS escrow accounts, which are funded using HAP funds for HCV participants. These escrow funds are restricted to deposits for participants’ savings accounts based on increased rent due to earned income. Using these funds for other purposes, such as covering unrelated HA expenses, is unallowable. " Condition During our audit we noted that the Authority's HCV program did not have sufficient cash to cover the FSS liability Context Per the Authority's FSS escrow liability listing, there should $168,705 in an escrow account. The Authority only has $156,715 in this account, leaving it short by $11,990. The Authority only has $585 in unrestricted HCV causse the program to have insufficient cash to cover the liability Cause Short-term cash shortages, improper use of funds, and lack of controls surrounding the management of restricted cash. Effect As a result, the Program was $11,990 short of the required restricted FSS cash balance to cover the FSS liability. Recommendations The Authority should replenish the HCV program's FSS. cash balance as soon as possible. Management Views Management agrees.
Finding 2024-001
US Department of Housing and Urban Development Direct Award Program Name: Housing Voucher Center Cluster Internal Control Significant Deficiency L Reporting AL Number: 14.871 2024-001 Unaudited Submission Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition: Management missed the deadline for its unaudited REAC FDS submission. Context: The Authority 's unaudited FDS submission was due on December 15th, 2024. The Authority did not submit the submission until February 2025. Cause: Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect: The Authority is not in compliance with the reporting guidelines outlined in the HCV compliance supplement. Recommendations: The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views: Management agrees with the finding, see Management's Corrective Action Plan.
Finding 2024-002
Program Name: Housing Voucher Center Cluster Internal Control Significant Deficiency A Allowable Exp AL Number: 14.871 2024-002 INTERPROGRAM DUE TO/DUE FROM ACTIVITIES Criteria: According to HUD Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the costs of another program. HUD views Due To’s and Due From’s reported in a PHA’s Federal programs as possible indicators of non-compliance. Condition: The Authority has interfund receivables and payables that have not been repaid as of fiscal year end. This results in certain programs having a negative cash balance as of fiscal year end. Context: The Authority reported a material ($134,558 in total, $42,682 in HCV program) amount of interfund receivables and payables, which is a significant red flag for HUD reviewers. Cause: The Authority was not effectively monitoring and managing interfund program balances in order to ensure that programs were not spending funds that they do not have. Effect: The use of Due to/ Due From transactions reported in the Authority's financials net to some programs having negative cash balances, which could signify to HUD that one or more programs have used resources to cover the costs of another program. Recommendations: The Authority should expand it's controls over cash reconciliations to include a step to verify if a program, fund or component unit is accurate along with the entire cash pool. Also interfund should be repaid monthly at a minimum. Management Views: Management agrees with the finding, see Management's Corrective Action Plan.
Finding 2024-003
Program Name Housing Choice Voucher Internal Control Significant Deficiency A/B Allowable Activities; Allowable costs/Cost principles CFDA Number 14.871 2024-003 FSS Liability and Insufficient Cash Questioned Costs $11,990. Amount restricted cash is short covering FSS liability. Criteria "HUD’s FSS Program Regulations (24 CFR 984.305): Specifically for the FSS program, this regulation governs the management of FSS escrow accounts, which are funded using HAP funds for HCV participants. These escrow funds are restricted to deposits for participants’ savings accounts based on increased rent due to earned income. Using these funds for other purposes, such as covering unrelated HA expenses, is unallowable. " Condition During our audit we noted that the Authority's HCV program did not have sufficient cash to cover the FSS liability Context Per the Authority's FSS escrow liability listing, there should $168,705 in an escrow account. The Authority only has $156,715 in this account, leaving it short by $11,990. The Authority only has $585 in unrestricted HCV causse the program to have insufficient cash to cover the liability Cause Short-term cash shortages, improper use of funds, and lack of controls surrounding the management of restricted cash. Effect As a result, the Program was $11,990 short of the required restricted FSS cash balance to cover the FSS liability. Recommendations The Authority should replenish the HCV program's FSS. cash balance as soon as possible. Management Views Management agrees.