FAC Explorer

Audit 373339

FY End
2025-03-31
Total Expended
$5.80M
Findings
1
Programs
3
Organization: The Housing Authority of the City of Ozark, Alabama (AL)
Year: 2025 Accepted: 2025-12-08
Auditor: CORK HILL & COMPANY LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1163593 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $5.77M Yes 1
14.536 RESEARCH AND EVALUATIONS, DEMONSTRATIONS, AND DATA ANALYSIS AND UTILIZATION $25,000 Yes 0
10.558 CHILD AND ADULT CARE FOOD PROGRAM $5,838 Yes 0

Contacts

Name Title Type
J71SMHUJL663 Dannie Walker Auditee
3347748210 Ben Cork Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Housing Authority of the City of Ozark, Alabama and is presented on the accrual basis of accounting. 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 only presents a selected portion of the operations of the organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Housing Authority of the City of Ozark, Alabama.
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 Housing Authority of the City of Ozark, Alabama has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Finding 2025-001 - Section 8 HQS Inspection Deficiencies, Significant Deficiency Moving To Work Demonstration Program - ALN No. 14.881; Grant period - year ended March 31, 2025 Criteria: The Code of Federal Regulations and HUD guidelines give the requirements for annual inspections to determine if the units leased to families meet the Housing Quality Standards. Specifically, HUD regulations CFR Parts 982.158 and 982.404 require inspections of units under HAP contract that fail to meet HQS. The PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. Condition: HQS inspections were tested for compliance in the current year. Of the 6 failed HQS inspections selected for review, 2 units were not re-inspected with the 30-day requirement and HAP payments were not properly abated. HQS inspections were not performed at an additional 2 units. Cause: Lack of controls over compliance with HUD regulations and turnover of staff. Effect: Non-compliance with HUD regulations. Questioned Costs: Not identified. Recommendation: We recommend that the Housing Authority should continue to strengthen its internal controls in relation to the HQS inspection and re-inspection process to ensure that they are completed within the required timeframe to meet the HUD compliance requirements. Management's Response: The Housing Authority is working on improved procedures for annual inspections and failed inspections to ensure that annual inspections are performed and re-inspections are performed within the 30-day requirement. The Housing Authority has hired new staff for its Housing Choice Voucher Program and is planning on additional training for employees to make sure they are qualified to meet the HQS re-inspection requirements. Dannie Walker, Executive Director, has assumed the responsibility of ensuring that the inspections will be performed within the timeframe to meet the HUD compliance requirements and expects the deficiencies which led to this finding to be resolved by March 31, 2026.