Audit 396905

FY End

2025-06-30

Total Expended

$1.06M

Findings

Programs

Organization: The Housing Authority of the City of Canton, Mississippi (MS)

Year: 2025 Accepted: 2026-03-31

Auditor: CORK HILL & COMPANY LLC

Organization Exclusion Status:

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Findings

ID	Ref	Severity	Repeat	Requirement
1205230	2025-001	Material Weakness	Yes	A

Programs

ALN	Program	Spent	Major	Findings
14.850	PUBLIC AND INDIAN HOUSING	$620,921	Yes	1
14.872	PUBLIC HOUSING CAPITAL FUND	$443,801	Yes	0

Contacts

Name	Title	Type
Z24JJZK5FC24	Stanford Beasley	Auditee
6018594032	Ben Cork	Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Housing Authority of the City of Canton, Mississippi and is presented on the accrual basis of accounting. 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 only presents a selected portion of the operations of the organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Housing Authority of the City of Canton, Mississippi.

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.

The Housing Authority of the City of Canton, Mississippi has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance

Finding Details

Finding 2025-001

2025-001 - Interprogram due to/due from Activities (Significant Deficiency) Low Rent Public Housing - 14.850 Criteria: According to PHA Accounting Brief #14, interprogram receivable and payable relationships should not be reported under accrual accounting simply from the result of a Housing Authority using a common checking or working capital account. Because of the basic nature of most Federal and State programs, resources from one program cannot be used to support the costs of another program. HUD views interprogram receivable and payable balances reported in a Housing Authority’s Federal programs as possible indicators of non‐compliance. Condition: The Housing Authority had interfund receivables and payables that had not been settled as of fiscal year ended June 30, 2025. Context: The Housing Authority reported a $98,534 interprogram receivable in the Low Rent Public Housing Program and a $98,534 interprogram payable in its combined blended component units as of fiscal year ended June 30, 2025. Cause: The Housing Authority was not effectively monitoring and managing the interfund program balances in order to ensure that programs were not paying for other programs’ expenses. Questioned Costs: None Effect: The use of receivables and payables related to interprogram transactions between the Housing Authority’s program have allowed some programs to have negative cash balances and payables to the Low Rent Public Housing Program. Recommendation: The Housing Authority should expand its controls over interprogram receivables and payables to ensure that all such balances are settled each month. Management's Response: As we were made aware of these issues, we immediately reviewed current internal controls and procedures and intend to more closely monitor interprogram balances. This would include a careful review of the general ledger and interprogram activity and the settling of related balances each month.