FAC Explorer

Audit 360951

FY End
2024-09-30
Total Expended
$5.39M
Findings
4
Programs
5
Organization: Rock Island Housing Authority (IL)
Year: 2024 Accepted: 2025-06-30
Auditor: Hawkins Ash CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
569472 2024-002 Material Weakness - A
569473 2024-003 Material Weakness - E
1145914 2024-002 Material Weakness - A
1145915 2024-003 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $804,382 Yes 2
14.872 Public Housing Capital Fund $794,607 Yes 0
14.896 Family Self-Sufficiency Program $76,743 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $67,505 - 0
14.871 Section 8 Housing Choice Vouchers $23,728 - 0

Contacts

Name Title Type
RKVCNNLUAPG3 John Chow Auditee
3097880825 Joe Haas 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. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Rock Island Housing Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the financial statements.
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. De Minimis Rate Used: N Rate Explanation: The Housing Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Rock Island Housing Authority received no federal awards of non-monetary assistance that are required to be disclosed for the fiscal year ended September 30, 2024. The Rock Island Housing Authority had no loans or loan guarantees required to be disclosed for the fiscal year ended September 30, 2024.

Finding Details

Finding 2024-002
Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are disallowed from using Operating Funds as funding to other nonfederal programs. Condition: Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years. Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.
Finding 2024-003
Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are required to reexamine family eligibility at least once every 12 months. Condition: When reviewing tenant files there were 7 out of 24 files sampled that did not have a timely reexamination completed for the audit period tested. Cause: Due to turnover of staff there were certain public housing tenants that did not have annual reexaminations completed. Effect: The Housing Authority not doing timely recertifications could lead to ineligible tenants receiving subsidized housing. Questioned Costs: Not applicable. Information: Sampling was determined to be statistically valid and the finding is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing examinations to ensure they are in compliance with eligibility requirements. Management’s Response: We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
Finding 2024-002
Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are disallowed from using Operating Funds as funding to other nonfederal programs. Condition: Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years. Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.
Finding 2024-003
Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are required to reexamine family eligibility at least once every 12 months. Condition: When reviewing tenant files there were 7 out of 24 files sampled that did not have a timely reexamination completed for the audit period tested. Cause: Due to turnover of staff there were certain public housing tenants that did not have annual reexaminations completed. Effect: The Housing Authority not doing timely recertifications could lead to ineligible tenants receiving subsidized housing. Questioned Costs: Not applicable. Information: Sampling was determined to be statistically valid and the finding is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing examinations to ensure they are in compliance with eligibility requirements. Management’s Response: We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.