Audit 37694

FY End
2022-09-30
Total Expended
$6.36M
Findings
8
Programs
6
Year: 2022 Accepted: 2023-06-29
Auditor: Wipfli LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
41457 2022-002 Significant Deficiency Yes L
41458 2022-002 Significant Deficiency Yes L
41459 2022-001 Significant Deficiency Yes B
41460 2022-002 Significant Deficiency Yes L
617899 2022-002 Significant Deficiency Yes L
617900 2022-002 Significant Deficiency Yes L
617901 2022-001 Significant Deficiency Yes B
617902 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.867 Indian Housing Block Grants $1.84M - 1
21.023 Covid-19-Emergency Rental Assistance Program $977,982 Yes 2
10.427 Rural Rental Assistance Payments $273,470 - 0
21.026 Covid-19-Homeowner Assistance Fund $173,492 - 0
14.867 Covid-19-Indian Housing Block Grants $157,894 - 1
10.415 Rural Rental Housing Loans $124,589 Yes 0

Contacts

Name Title Type
PW63WCV92CK3 Cathy Beson Auditee
7155883348 Lisa Desotelle Auditor
No contacts on file

Notes to SEFA

Title: Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Lac du Flambeau Chippewa Housing Authority (the Authority) under programs of the federal government for the year ended September 30, 2022. 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. Because the Schedule presents only a selected portion of the operations of Lac du Flambeau Chippewa Housing Authority, it is not intended to, and does not, present the financial position, changes in financial position, or cash flows of Lac du Flambeau Chippewa Housing Authority. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Financing for the construction of four 20-unit apartment buildings was obtained through U.S. Department of Agriculture Rural Development (Assistance Listing No. 10.415, Rural Rental Housing Assistance Loan) and is considered noncash federal assistance because of continuing compliance requirements. At September 30, 2022, the loan balances totaled $2,817,532.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Lac du Flambeau Chippewa Housing Authority (the Authority) under programs of the federal government for the year ended September 30, 2022. 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. Because the Schedule presents only a selected portion of the operations of Lac du Flambeau Chippewa Housing Authority, it is not intended to, and does not, present the financial position, changes in financial position, or cash flows of Lac du Flambeau Chippewa Housing Authority. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority did not provide any federal awards to subrecipients.

Finding Details

2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-001 Allowable Costs/Cost Principles Federal program information: Funding agency: U.S. Department of Treasury Title: Emergency Rental Assistance Program Assistance Listing number: 21.023 Award year: 2022 Criteria or Specific Requirement: Uniform guidance requires that grant expenses be allowable and comply with cost principle guidelines. Condition: Pursuant to our testing of disbursements and internal controls over disbursements, Wipfli LLP noted the following control deficiency and noncompliance: Eight of the 42 cash disbursements selected for testing were incorrect. These all related to utility payments, where the current portion due was paid out twice. The Authority submitted the same cost twice for reimbursement totaling $691 of the invoices tested. From our sample of 42 disbursements, we examined 8 utility payments consisting of $7,689. Total utility payments for the grant were $283,105. The sample was not a statistically valid sample. Context: We tested a sample of 42 non-payroll disbursements. Questioned Costs: $691. Effect: The program overpaid utility bills to participants and overstated grant expenditures. Cause: Program staff turnover and lack of supervisory monitoring contributed to internal control deficiencies and grant noncompliance. Repeat: Yes. Auditor?s Recommendation: We recommend the Authority provide proper training and supervision over employees responsible for cash disbursements to ensure federal grant expenditures are allowable. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-001 Allowable Costs/Cost Principles Federal program information: Funding agency: U.S. Department of Treasury Title: Emergency Rental Assistance Program Assistance Listing number: 21.023 Award year: 2022 Criteria or Specific Requirement: Uniform guidance requires that grant expenses be allowable and comply with cost principle guidelines. Condition: Pursuant to our testing of disbursements and internal controls over disbursements, Wipfli LLP noted the following control deficiency and noncompliance: Eight of the 42 cash disbursements selected for testing were incorrect. These all related to utility payments, where the current portion due was paid out twice. The Authority submitted the same cost twice for reimbursement totaling $691 of the invoices tested. From our sample of 42 disbursements, we examined 8 utility payments consisting of $7,689. Total utility payments for the grant were $283,105. The sample was not a statistically valid sample. Context: We tested a sample of 42 non-payroll disbursements. Questioned Costs: $691. Effect: The program overpaid utility bills to participants and overstated grant expenditures. Cause: Program staff turnover and lack of supervisory monitoring contributed to internal control deficiencies and grant noncompliance. Repeat: Yes. Auditor?s Recommendation: We recommend the Authority provide proper training and supervision over employees responsible for cash disbursements to ensure federal grant expenditures are allowable. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.