FAC Explorer

Audit 361942

FY End
2024-12-31
Total Expended
$7.69M
Findings
2
Programs
3
Organization: Morristown Housing Auhtority (TN)
Year: 2024 Accepted: 2025-07-10
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571007 2024-002 Significant Deficiency - C
1147449 2024-002 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $2.83M Yes 0
14.872 Public Housing Capital Fund $2.45M Yes 1
14.850 Public Housing Operating Fund $2.41M - 0

Contacts

Name Title Type
ZMGEJEGZ3SM4 Steve Burchett Auditee
4235865115 Cole Monroe Auditor
No contacts on file

Notes to SEFA

Title: SCOPE OF PRESENTATION Accounting Policies: 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. 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 Tennessee Valley Housing Services (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purpose of this schedule, only the portion of the program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. This schedule also only includes the amounts expended by the Authority, none of the amount expended, if any, by the blended or discretely present component units have been included.

Finding Details

Finding 2024-002
2024-002 Drawing of Capital Funds Criteria Per 24 CFR 200.05, Housing Authorities are to minimize the time federal funds are drawn down to expenditure. Additionally 24 CFR 905.310 states that PHA shall initiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule. Condition Management did not follow the 3 day rule. Context During a RAD conversion, management drew down CFP funds to provide funding for RAD tax credit property. Instead of providing all funds to the RAD development within 3 days management held onto the funds. Cause Management was unaware of the 3 day requirement on RAD development funds drawn down. Effect The Authority is not in compliance with Cash Management rules relating to the Capital Fund Program. Recommendations The Authority needs to understand and comply with Public Housing Capital Fund Program's cash management rules. Management Views Management agrees.
Finding 2024-002
2024-002 Drawing of Capital Funds Criteria Per 24 CFR 200.05, Housing Authorities are to minimize the time federal funds are drawn down to expenditure. Additionally 24 CFR 905.310 states that PHA shall initiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule. Condition Management did not follow the 3 day rule. Context During a RAD conversion, management drew down CFP funds to provide funding for RAD tax credit property. Instead of providing all funds to the RAD development within 3 days management held onto the funds. Cause Management was unaware of the 3 day requirement on RAD development funds drawn down. Effect The Authority is not in compliance with Cash Management rules relating to the Capital Fund Program. Recommendations The Authority needs to understand and comply with Public Housing Capital Fund Program's cash management rules. Management Views Management agrees.