FAC Explorer

Audit 37086

FY End
2022-03-31
Total Expended
$5.48M
Findings
2
Programs
4
Organization: Laconia Housing & Redevelopment Authority (NH)
Year: 2022 Accepted: 2022-10-27
Auditor: Rhr Smith & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38772 2022-001 Material Weakness - N
615214 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $3.88M Yes 1
10.415 Rural Rental Housing Loans $1.44M - 0
10.427 Rural Rental Assistance Payments $152,407 - 0
14.170 Congregate Housing Service Program $8,886 - 0

Contacts

Name Title Type
X6DKN1LDBRM6 Catherine Bowler Auditee
6035242112 Kim Wall Auditor
No contacts on file

Notes to SEFA

Title: Mortgage Balance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Laconia Housing and Redevelopment Authority has elected not to usethe 10 percent de minimis indirect cost rate as allowed under the UniformGuidance. Federal expenditures for program 10.415 include the $1,437,244 mortgagebalance at the beginning of the audit period, interest credit subsidy of $53,867 and theadditional loan amount of $5,000 added to the $636,534 existing loan. The mortgagebalance at March 31, 2022 was $1,415,126.
Title: Reporting Guidance Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis ofaccounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Laconia Housing and Redevelopment Authority has elected not to usethe 10 percent de minimis indirect cost rate as allowed under the UniformGuidance. The accompanying Schedule of Expenditures of Federal Awards has beenprepared following the guidance provided by the U.S. Authority of Housing and UrbanDevelopments Real Estate Assessment Center (REAC).

Finding Details

Finding 2022-001
2022-001 ? Housing Quality Standards Inspections Federal Program Information: U.S. Department of Housing and Urban Development - Housing Choice Voucher: AL - 14.871 Section 8 Housing Choice Voucher Criteria: The following CFR(s) apply to this finding: 2 CFR 200.514(c), 2 CFR section 200.305(b)(3). Condition: During audit procedures, it was identified that the Unit?s inspections were being completed but if there was a failure, re-inspections were not completed as required within the 30-day period. Cause: The Unit does not have the necessary internal controls over compliance. Effect: The Unit is not effectively reinspecting units. Identification of Questioned Costs: None identified. Context: The population of 40 tenants were examine and there was 14 that had a failed inspection with no reinspection. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that federal reimbursements requests are submitted on a timely basis. Views of Responsible Officials and Corrective Action Plan: Catherine Bowler, Director of Finance and Operations is the responsible Official and please see the Corrective Action Plan issued by the Laconia Housing and Redevelopment Authority.
Finding 2022-001
2022-001 ? Housing Quality Standards Inspections Federal Program Information: U.S. Department of Housing and Urban Development - Housing Choice Voucher: AL - 14.871 Section 8 Housing Choice Voucher Criteria: The following CFR(s) apply to this finding: 2 CFR 200.514(c), 2 CFR section 200.305(b)(3). Condition: During audit procedures, it was identified that the Unit?s inspections were being completed but if there was a failure, re-inspections were not completed as required within the 30-day period. Cause: The Unit does not have the necessary internal controls over compliance. Effect: The Unit is not effectively reinspecting units. Identification of Questioned Costs: None identified. Context: The population of 40 tenants were examine and there was 14 that had a failed inspection with no reinspection. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Unit implement internal control processes and procedures to ensure that federal reimbursements requests are submitted on a timely basis. Views of Responsible Officials and Corrective Action Plan: Catherine Bowler, Director of Finance and Operations is the responsible Official and please see the Corrective Action Plan issued by the Laconia Housing and Redevelopment Authority.