FAC Explorer

Audit 374593

FY End
2025-03-31
Total Expended
$10.03M
Findings
2
Programs
4
Organization: Winnebago County Housing Authority (IL)
Year: 2025 Accepted: 2025-12-15
Auditor: RECTOR REEDER & LOFTON PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164789 2025-001 Material Weakness Yes E
1164790 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $7.14M Yes 1
14.879 MAINSTREAM VOUCHERS $1.10M Yes 0
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $268,196 Yes 0
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $55,220 Yes 0

Contacts

Name Title Type
NHZZNNWMW5G3 Vickie Huwe Auditee
8159632133 Dale R. Rector 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 for the year ended March 31, 2025. 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 Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.
The Authority provided no federal awards to subrecipients during the fiscal year ending March 31, 2025.
The Winnebago County Housing Authority received no federal awards of non-monetary assistance that are required to be disclosed for the year ended March 31, 2025. The Winnebago County Housing Authority had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended March 31, 2025. The Winnebago County Housing Authority maintains the following limits of insurance as of March 31, 2025: Property $ 17,403,215 Liability $ 1,000,000 Business Auto Liability $ 1,000,000 Worker Compensation Statutory Public Officials Liability $ 1,000,000 Employee Dishonesty $ 500,000 Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

Finding Details

Finding 2025-001
Finding 2025-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - Subsidy ALN 14.881 Condition & Cause: During the review of 60 tenant files from the Moving to Work (MTW) program, 9 files (15%) were found to be noncompliant in one or more key compliance areas. Specifically, 5 files contained errors in income verification or calculation, and 5 files lacked documentation of an annual unit inspection. The noncompliance can be attributed to staff turnover during the audit period and lack of oversight. As a mitigating action, the Agency implemented an internal quality control review process in December 2024. Based on extrapolation of the identified issues, we estimate Likely Questioned Costs to be $38,139, representing approximately 0.6% of combined dwelling rental revenue and HAP expenses. This amount is immaterial to the financial statements. Criteria: Relevant compliance requirements can be found in Title 24 of the Code of Federal Regulations (CFR), the Agency's Admissions and Continued Occupancy Policy (ACOP), Administrative Plan, MTW Plan, and specific HUD guidelines for documenting and maintaining tenant files under the Public Housing and Housing Choice Voucher programs. Effect: Failure to properly verify and calculate annual income can lead to incorrect rent determinations, potentially causing overpayments or underpayments and contributing to financial misstatements. Additionally, missing documentation of annual unit inspections undermines the program's goal of ensuring safe, decent, and sanitary housing. Ongoing noncompliance may also trigger heightened regulatory oversight. Recommendation: We recommend that the Agency continue to enhance its quality control review procedures over tenant file management and closely monitor this area to promptly detect and correct errors. Additionally, the Agency should consider providing comprehensive or refresher training on HUD regulations to relevant staff. Questioned Costs: $38,139 Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.