FAC Explorer

Audit 380802

FY End
2025-09-30
Total Expended
$1.84M
Findings
1
Programs
4
Organization: Town of Waynesville Housing Authority (NC)
Year: 2025 Accepted: 2026-01-12
Auditor: SMITH MARION & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1168738 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
10.415 RURAL RENTAL HOUSING LOANS $905,555 Yes 0
14.182 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION $339,166 Yes 0
14.850 PUBLIC HOUSING OPERATING FUND $298,994 Yes 1
14.872 PUBLIC HOUSING CAPITAL FUND $292,946 Yes 0

Contacts

Name Title Type
NBDKNY2M7YT9 Belinda Kahl Auditee
8284566377 Chad Porter Auditor
No contacts on file

Notes to SEFA

The accompanying schedule presents the expenditures incurred (and related awards received) by Waynesville Housing Authority (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.
The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.
During the fiscal year ended September 30, 2025, the Authority disbursed no Federal funds to subrecipients.
The Authority elected to use the 15% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.
The Authority has a promissory note with the United States Department of Agriculture Rural Rental Housing Loan programs. The interest rates for these notes are estimated. Interest is based upon the market rate on the date of payment received by the United States Department of Agriculture. In accordance with the Uniform Guidance the outstanding loan balances at the beginning of the fiscal year are reported as federal expenditure in the accompanying schedule of federal awards. Balances of loans included in the schedule as follows: Balance at Balance at Federal Program Loans ALN 10/01/24 Additions Deletions 09/30/25 Rural Rental Housing Loans 10.415 $905,555 $- $(51,734) $853,821 $905,555 $- $(51,734) $853,821

Finding Details

Finding 2025-001
US Department of Housing and Urban Development Program Name Low Rent Public Housing AL Number 14.850 E Eligibility 2025-001 Income Eligibility Questioned Costs The monetary impact needs further investigation to determine the amount for the period of noncompliance. Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition During the audit, it was noted that in twelve (12) instances of tenant's recertification form for participation in the Program we not completed. Context We selected a sample of twenty-five (25) tenant files, of those files twelve (12) lacked the correct recertification forms. The prior year forms were present, the future forms were present, however, the period under audit was not completed. Cause The Authority had a change in personnel that complete the annual recertification. The person responsible during our audit period did not complete the required recertifications with in 12 months of prior certifications. Effect The Authority was not in compliance with HUD regulations during the period of time indicated in the cause description. Recommendations Management Views Management should implement internal control procedures to ensure that recertification forms are obtained during re-examination and are properly files in the tenant's file. Management agrees.