FAC Explorer

Audit 370735

FY End
2024-06-30
Total Expended
$11.56M
Findings
1
Programs
6
Organization: Roanoke-Chowan Regional Housing Authority (NC)
Year: 2024 Accepted: 2025-10-13
Auditor: Aprio LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1160350 2024-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $2.53M Yes 0
14.850 Public Housing Operating Fund $1.93M Yes 1
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $784,983 Yes 0
10.415 Rural Rental Housing Loans $196,402 Yes 0
14.871 Section 8 Housing Choice Vouchers $152,056 Yes 0
10.427 Rural Rental Assistance Payments $121,445 Yes 0

Contacts

Name Title Type
KHCNXV2V9UC5 Theodora Campbell Auditee
2525371051 Brandon Wilkerson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government as of and for the year ended June 30, 2024. 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). 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. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements.
From 1970 to 1998, the Authority was approved by the USDA Rural Housing Service to receive a loans totaling $4,252,218 for the rehabilitation of rural housing. The outstanding balance as of June 30, 2023, totaled $2,159,856
The USDA Rural Housing Service provides the Rural Rental Housing Loan. The Authority received Subsidy Credit for the loans to reduce the effective interest rate of the loan. The Housing Authority records interest expense separate from the subsidy credit.
The rental assistance payments shown represents the total of rental assistance received that is determined by netting the approved basic rent for the shelter and tenant contributions.

Finding Details

Finding 2024-003
Criteria: The PHA is required to maintain support of eligibility determinations that were made so support the individual program participants were determined to be eligible, and that only eligible individuals or groups of individuals participated in the program. Condition: During the year, 40 of the 4,026 tenant receipts that were received by the Authority were tested to determine if proper eligibility was determined for the program. Of the forty (40) tenant files reviewed, one (1) tenant file was missing the annual recertifcation and supporting documentation and seven (9) additional tenant file lacked the various supporting documentation. Questioned Costs: Not Determinable Cause: Staffing changes and overall turnover at the Authority was the reason for disorganization of the tenant files and the misplacement of the file selected for testing. Effect: The Authority does not have proper support to verify tenant is properly eligible for the program. Recommendation: The Authority should provide additional training to Public Housing staff to make sure the importance of tenant files and the related supporting documents related to the eligibility of program participants is readily available. Also, the Authority should consider if an electronic filing system would be to the benefit of the authority. Response: The Authority agrees with the finding is taking key actions to enhance controls related to eligibility and rent eligibility. This includes but not limited too revisiting a consulting proposal for an operational audit, completing recent staff training in rent calculations, completing a full internal file review with a compliance checklist, and evaluating an electronic document management system.