Audit 361578

FY End
2024-09-30
Total Expended
$5.98M
Findings
2
Programs
6
Year: 2024 Accepted: 2025-07-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
570557 2024-001 Material Weakness Yes C
1146999 2024-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.86M - 0
14.872 Public Housing Capital Fund $750,144 Yes 1
14.850 Public Housing Operating Fund $696,699 - 0
10.427 Rural Rental Assistance Payments $447,272 - 0
10.415 Rural Rental Housing Loans $220,636 Yes 0
10.766 Community Facilities Loans and Grants $0 - 0

Contacts

Name Title Type
QXLFJ817TTK3 Zach Bowen Auditee
2763958308 Bob Brandenburg Auditor
No contacts on file

Notes to SEFA

Title: 1 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 Authority did not elect to use the 10% de minimus cost rate Major Program
Title: 2 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 Authority did not elect to use the 10% de minimus cost rate The accompany ing schedule of ex penditures of federal awards includes the federal award activity of the Wise County Redev elopment and Housing 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 for 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
Title: 3 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 Authority did not elect to use the 10% de minimus cost rate Outstanding Loan Balance
Title: 4 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 Authority did not elect to use the 10% de minimus cost rate 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
Title: 5 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 Authority did not elect to use the 10% de minimus cost rate Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports ex cept for changes made to reflect amounts in accordance with generally accepted accounting principles
Title: 6 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 Authority did not elect to use the 10% de minimus cost rate The Authority did not elect to use the 10% de minimus cost rate

Finding Details

Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: (CFDA #14.872) Capital Fund Program and (CFDA#14850) Criteria: Per HUD regulations, draw-downs from the LOCCS system should be spent on the requested invoices within three business days of receipt of the funds. Also, there should be supporting documentation for all funds requested. Condition: The Authority paid contractor and other associated invoices before submitting requests for payment in. In addition, when funds were received, payment occurred more than three days after deposit. LOCCS drawdowns did reflect actual payment totals to vendors, but not all drawdowns could be traced to particular payments. Effect: The Authority is not in compliance with the HUD requirements for the fiscal requirements for the capital fund program. Other program funds were used for payment pending drawdown from LOCCS. Cause: The Authority recently experienced turnover in both the executive director and finance director positions. Recommendation: The Authority should drawdown and expend LOCCS funds in three business days, Drawdown requests should be reconciled to vendor invoicing. Corrective Action Plan (Prepared by Management): The Housing Authority will reconcile LOCCS requests to vendor billing and expend funds within the three-day period. Prior Year Findings: Findings 2023-1 and 2023-3 have been resolved. The Authority has completed depository agreements with the relevant financial institutions and developed an allocation plan using time studies conducted during the year. Finding 2023-2 is included above as 2024-1 as the Authority is continuing to work to correct the issue.
Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: (CFDA #14.872) Capital Fund Program and (CFDA#14850) Criteria: Per HUD regulations, draw-downs from the LOCCS system should be spent on the requested invoices within three business days of receipt of the funds. Also, there should be supporting documentation for all funds requested. Condition: The Authority paid contractor and other associated invoices before submitting requests for payment in. In addition, when funds were received, payment occurred more than three days after deposit. LOCCS drawdowns did reflect actual payment totals to vendors, but not all drawdowns could be traced to particular payments. Effect: The Authority is not in compliance with the HUD requirements for the fiscal requirements for the capital fund program. Other program funds were used for payment pending drawdown from LOCCS. Cause: The Authority recently experienced turnover in both the executive director and finance director positions. Recommendation: The Authority should drawdown and expend LOCCS funds in three business days, Drawdown requests should be reconciled to vendor invoicing. Corrective Action Plan (Prepared by Management): The Housing Authority will reconcile LOCCS requests to vendor billing and expend funds within the three-day period. Prior Year Findings: Findings 2023-1 and 2023-3 have been resolved. The Authority has completed depository agreements with the relevant financial institutions and developed an allocation plan using time studies conducted during the year. Finding 2023-2 is included above as 2024-1 as the Authority is continuing to work to correct the issue.