Audit 361639

FY End
2024-09-30
Total Expended
$1.93M
Findings
4
Programs
3
Year: 2024 Accepted: 2025-07-08

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
570615 2024-001 Material Weakness Yes A
570616 2024-001 Material Weakness Yes A
1147057 2024-001 Material Weakness Yes A
1147058 2024-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $805,973 Yes 1
14.872 Public Housing Capital Fund $747,133 - 0
14.850 Public Housing Operating Fund $381,573 - 1

Contacts

Name Title Type
F48CS2MTB451 Sue Smith Auditee
2764312022 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 has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. 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 has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The schedule of expenditures of federal awards presents the activity of all federal awards programs of the Authority and is presented in accordance with the requirements of Title 2 U.S. code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). The Authority's reporting entity is defined in Note 1 to the Authority's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies, are included on the schedule. 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 has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. 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: 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 has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with generally accepted accounting principles.
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 has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance. The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: Low-Income Housing Program (CFDA #14.850) Section 8 Housing Choice Vouchers (CFDA #14.871) Questioned Costs: $106,589 Criteria: HUD program funds cannot be used to support or supplement another program. Condition: The Authority has inter-program payable and receivable in excess of $100,000 at year end between the two affected activities as shown of the attached FDS (Lines 144 and 347). Amounts in the current year are more than double those at the prior year end. Internal control to detect the non-compliance issue has not been. Effect: The Authority is not in compliance with the HUD requirements for the operations of the voucher and public housing programs. Cause: The Authority hired an additional staff member for its Voucher program but suffered declines in the number of vouchers issued and the associated administrative fee earned from such. Additionally, the amount of HAP remitted from HUD on a monthly basis has been below the proper level. To make up for this shortfall, the Authority utilized administrative funds for HAP. Recommendation: The Authority should address staffing levels for the Voucher program and increase voucher issuance if possible. We also suggest that a request be made to HUD for additional administrative funding. Internal control procedures should be established to detect any excess charges to either HCV or public housing and reflect immediate payment of allocated expenses. Corrective Action Plan: The Housing Authority has addressed the staffing levels for the program and is working with HUD to secure reimbursements for under funded HAP remittances. Additionally, the Authority is working with HUD to utilize reserve funds to alleviate the issue. Prior year findings: Finding 2023-1 is listed above as 2024-1.
Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: Low-Income Housing Program (CFDA #14.850) Section 8 Housing Choice Vouchers (CFDA #14.871) Questioned Costs: $106,589 Criteria: HUD program funds cannot be used to support or supplement another program. Condition: The Authority has inter-program payable and receivable in excess of $100,000 at year end between the two affected activities as shown of the attached FDS (Lines 144 and 347). Amounts in the current year are more than double those at the prior year end. Internal control to detect the non-compliance issue has not been. Effect: The Authority is not in compliance with the HUD requirements for the operations of the voucher and public housing programs. Cause: The Authority hired an additional staff member for its Voucher program but suffered declines in the number of vouchers issued and the associated administrative fee earned from such. Additionally, the amount of HAP remitted from HUD on a monthly basis has been below the proper level. To make up for this shortfall, the Authority utilized administrative funds for HAP. Recommendation: The Authority should address staffing levels for the Voucher program and increase voucher issuance if possible. We also suggest that a request be made to HUD for additional administrative funding. Internal control procedures should be established to detect any excess charges to either HCV or public housing and reflect immediate payment of allocated expenses. Corrective Action Plan: The Housing Authority has addressed the staffing levels for the program and is working with HUD to secure reimbursements for under funded HAP remittances. Additionally, the Authority is working with HUD to utilize reserve funds to alleviate the issue. Prior year findings: Finding 2023-1 is listed above as 2024-1.
Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: Low-Income Housing Program (CFDA #14.850) Section 8 Housing Choice Vouchers (CFDA #14.871) Questioned Costs: $106,589 Criteria: HUD program funds cannot be used to support or supplement another program. Condition: The Authority has inter-program payable and receivable in excess of $100,000 at year end between the two affected activities as shown of the attached FDS (Lines 144 and 347). Amounts in the current year are more than double those at the prior year end. Internal control to detect the non-compliance issue has not been. Effect: The Authority is not in compliance with the HUD requirements for the operations of the voucher and public housing programs. Cause: The Authority hired an additional staff member for its Voucher program but suffered declines in the number of vouchers issued and the associated administrative fee earned from such. Additionally, the amount of HAP remitted from HUD on a monthly basis has been below the proper level. To make up for this shortfall, the Authority utilized administrative funds for HAP. Recommendation: The Authority should address staffing levels for the Voucher program and increase voucher issuance if possible. We also suggest that a request be made to HUD for additional administrative funding. Internal control procedures should be established to detect any excess charges to either HCV or public housing and reflect immediate payment of allocated expenses. Corrective Action Plan: The Housing Authority has addressed the staffing levels for the program and is working with HUD to secure reimbursements for under funded HAP remittances. Additionally, the Authority is working with HUD to utilize reserve funds to alleviate the issue. Prior year findings: Finding 2023-1 is listed above as 2024-1.
Finding 2024-1 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: Low-Income Housing Program (CFDA #14.850) Section 8 Housing Choice Vouchers (CFDA #14.871) Questioned Costs: $106,589 Criteria: HUD program funds cannot be used to support or supplement another program. Condition: The Authority has inter-program payable and receivable in excess of $100,000 at year end between the two affected activities as shown of the attached FDS (Lines 144 and 347). Amounts in the current year are more than double those at the prior year end. Internal control to detect the non-compliance issue has not been. Effect: The Authority is not in compliance with the HUD requirements for the operations of the voucher and public housing programs. Cause: The Authority hired an additional staff member for its Voucher program but suffered declines in the number of vouchers issued and the associated administrative fee earned from such. Additionally, the amount of HAP remitted from HUD on a monthly basis has been below the proper level. To make up for this shortfall, the Authority utilized administrative funds for HAP. Recommendation: The Authority should address staffing levels for the Voucher program and increase voucher issuance if possible. We also suggest that a request be made to HUD for additional administrative funding. Internal control procedures should be established to detect any excess charges to either HCV or public housing and reflect immediate payment of allocated expenses. Corrective Action Plan: The Housing Authority has addressed the staffing levels for the program and is working with HUD to secure reimbursements for under funded HAP remittances. Additionally, the Authority is working with HUD to utilize reserve funds to alleviate the issue. Prior year findings: Finding 2023-1 is listed above as 2024-1.