FAC Explorer

Audit 365373

FY End
2023-12-31
Total Expended
$797,859
Findings
6
Programs
1
Organization: San Juan Housing Authority (TX)
Year: 2023 Accepted: 2025-09-02
Auditor: John A Blakeway CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575321 2023-001 Material Weakness - L
575322 2023-002 Material Weakness - B
575323 2023-003 - - E
1151763 2023-001 Material Weakness - L
1151764 2023-002 Material Weakness - B
1151765 2023-003 - - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $797,859 Yes 3

Contacts

Name Title Type
UT3NBQX5YU35 Bob Garza, Jr. Auditee
9567813130 John A. Blakeway Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Refer to Note B, Column B, Row 3. De Minimis Rate Used: N Rate Explanation: Auditee did not use the 10% de minimis cost rate. Refer to Note B, Column B, Row 3. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the PHA under programs of the federal government for the year ended December 31, 2023. 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 PHA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the PHA.
Title: Note B - Significant Accounting Policies Accounting Policies: Refer to Note B, Column B, Row 3. De Minimis Rate Used: N Rate Explanation: Auditee did not use the 10% de minimis cost rate. Refer to Note B, Column B, Row 3. 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. The PHA's summary of significant accounting policies is presented in Note A in the PHA's basic financial statements. The PHA has not elected to use the 10% de minimis cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Material weakness in internal control - Financial statements. Criteria or Specific Requirement: PHA's financial statements contained material misstatements and did not agree with the PHA's REAC submission. Condition: The PHA's financial statements were materially misstated requiring adjustments. Cause: The PHA has limited funds and did not employ an outside fee accountant. Effect: The PHA's financial statements were inaccurate. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should employ an outside fee accountant or an employee with accounting experience. Response: The PHA will hire an outside fee accountant or an employee with accounting experience.
Finding 2023-002
Material weakness in internal control - ACH payments. Criteria or Specific Requirement: Board approval of ACH expenses should be obtained for adequate internal control over disbursements. Condition: The PHA's Board is not approving ACH payments. Cause: Unknown. Effect: ACH payments are not being approved by the PHA's Board. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should number the ACH payments on its bank statements and attach supporting documentation with the corresponding number. The numbered supporting documentation should be attached to a copy of the bank statement and approved by a Board member authorized to cosign checks. Response: The PHA will implement this internal control procedure.
Finding 2023-003
Tenant file documentation - Housing Choice Voucher Program - ALN No. 14.871. Criteria or Specific Requirement: The PHA's tenant files should contain the required documentation to support the tenants housing assistance payment. Condition: Thirteen tenant files were tested non-statistically and the following exceptions were found: 1. Two files were found where the housing assistance payment was overpaid. The PHA over paid the landlord by a total of $53 on these two tenants. 2. Five files were found where the tenant income verification was either missing or incomplete. 3. Eleven files were found where rent reasonableness documentation was not in the file. 4. One file was found without a citizenship declaration form. 5. Six files were found with either a missing or incorrect utility allowance calculations. Cause: The PHA is not reviewing its tenant files to make sure all required documentation is present. Effect: The PHA's tenant files are not being properly documented. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should use a file checklist and review the tenant files to make sure all required documentation is present. Response: The PHA will use a file checklist and review tenant file documentation for completeness.
Finding 2023-001
Material weakness in internal control - Financial statements. Criteria or Specific Requirement: PHA's financial statements contained material misstatements and did not agree with the PHA's REAC submission. Condition: The PHA's financial statements were materially misstated requiring adjustments. Cause: The PHA has limited funds and did not employ an outside fee accountant. Effect: The PHA's financial statements were inaccurate. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should employ an outside fee accountant or an employee with accounting experience. Response: The PHA will hire an outside fee accountant or an employee with accounting experience.
Finding 2023-002
Material weakness in internal control - ACH payments. Criteria or Specific Requirement: Board approval of ACH expenses should be obtained for adequate internal control over disbursements. Condition: The PHA's Board is not approving ACH payments. Cause: Unknown. Effect: ACH payments are not being approved by the PHA's Board. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should number the ACH payments on its bank statements and attach supporting documentation with the corresponding number. The numbered supporting documentation should be attached to a copy of the bank statement and approved by a Board member authorized to cosign checks. Response: The PHA will implement this internal control procedure.
Finding 2023-003
Tenant file documentation - Housing Choice Voucher Program - ALN No. 14.871. Criteria or Specific Requirement: The PHA's tenant files should contain the required documentation to support the tenants housing assistance payment. Condition: Thirteen tenant files were tested non-statistically and the following exceptions were found: 1. Two files were found where the housing assistance payment was overpaid. The PHA over paid the landlord by a total of $53 on these two tenants. 2. Five files were found where the tenant income verification was either missing or incomplete. 3. Eleven files were found where rent reasonableness documentation was not in the file. 4. One file was found without a citizenship declaration form. 5. Six files were found with either a missing or incorrect utility allowance calculations. Cause: The PHA is not reviewing its tenant files to make sure all required documentation is present. Effect: The PHA's tenant files are not being properly documented. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should use a file checklist and review the tenant files to make sure all required documentation is present. Response: The PHA will use a file checklist and review tenant file documentation for completeness.