Audit 378505

2025-001: Special Tests and Provisions Assistance Listing Number: 14.850a, Low Income Public Housing CONDITION AND CRITERIA: Housing Authorities are required under their Annual Contributions Contract (ACC) to have an updated General Depository Agreement in place with all financial institutions. All funds must be insured by a federal organization to safeguard against loss of said funds. Any portion of these funds not insured by FDIC must be fully collateralized with specific U.S. Government or Agency securities to prevent a loss of funds. TYPE OF FINDING: Significant Deficiency CAUSE: The Housing Authority experienced turnover in the Executive Director Position. Three different Executive Directors have been in place and changed over the last several years. Proper communication was not done in the internal control structure to allow compliance with HUD rules and regulations. EFFECT: The Housing Authority could not produce a current General Depository Agreement for their financial institutions. QUESTIONED COSTS: None known AUDITORS’ RECOMMENDATION: We recommend that the Housing Authority update its Declaration of Trust with the financial institutions that they do business with.

Assistance Listing No. 14.850a, Low Income Public Housing, Grant Period: Fiscal Year-End March 31, 2025 CRITERIA: The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Title 29 of the Code of Federal Regulations, Subtitle A, Part 5, Subpart A 5.5-A.3 Payrolls and Basic Records includes a requirement for the contractor or subcontractor to submit to the non-federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). CONDITION AND PERSPECTIVE: The Authority’s Capital Fund Program funded one contract during fiscal year 2024 for which Davis Bacon Act requirements applied. The applicable contract began in May of 2023 and continued through the fiscal year ended March 31, 2024 into fiscal year 2025. The Authority was unable to provide copies of certified payrolls applicable to any weeks after September of 2023. QUESTIONED COSTS: None noted CAUSE: Failure to monitor active contracts to ensure compliance with federal Davis Bacon Act requirements. EFFECT: Non-compliance with the Davis-Bacon Act. CURRENT YEAR STATUS: The Housing Authority was unable to provide the certified payrolls for the construction contract that continued into fiscal year 2025. This is a repeat finding.