FAC Explorer

Audit 388792

FY End
2025-06-30
Total Expended
$815,951
Findings
1
Programs
2
Organization: Housing Authority of the County of Howard, Arkansas (AR)
Year: 2025 Accepted: 2026-02-24
Auditor: MILLER & ROSE PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1175181 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.850 PUBLIC HOUSING OPERATING FUND $451,564 Yes 1
14.872 PUBLIC HOUSING CAPITAL FUND $364,387 Yes 0

Contacts

Name Title Type
YAFLXKTWBVA5 Ross Allen Auditee
8708451080 Steave Miller Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Housing Authority of the County of Howard under programs of the federal government for the year ended June 30, 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 Housing Authority of the County of Howard, it is not intended to and does not present the financial position, changes in net position, or cash flows of Housing Authority of the County of Howard.
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. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Housing Authority of the County of Howard has not made an election to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
2025-01 Family file Deficiencies 14.850 Public and Indian Housing Program Criteria and Criteria: The Authority’s purpose for existence is to provide decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be charged to eligible families. HUD regulations prescribe the content of these family files. These requirements consist of the following: Criteria: Our review of 23 family files revealed the following: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. Context: Our review of 23 family files revealed the following: a. One file with a delinquent annual reexamination. b. One file lacked verification of childcare deduction. c. Two files contained rent calculation errors. Effect: Delays in performing annual reexaminations may result in under charging the tenant rent and thus understating dwelling rental income. Deduction for medical expenses and childcare could be overstated without proper verification and could result in an incorrect rental charge to the tenant. Rental calculation errors may result in an incorrect rent charge to the tenant, Recommendation: The Authority should ensure all tenant reexaminations are performed timely. Verification of medical and childcare deductions should be documented with appropriate documentation. The Authority should ensure the proper verified income is used in calculation of rent charges to the tenant. Response: We have modified policies and procedures to ensure all re-examinations are performed timely, appropriate deductions are documented and rental charges are calculated correctly.