Audit 403973

FY End

2025-09-30

Total Expended

$34.86M

Findings

Programs

Organization: Housing Authority of the County of Butte (CA)

Year: 2025 Accepted: 2026-06-17

Auditor: SMITHMARION&CO

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
1217888	2025-002	Material Weakness	Yes	N

Programs

ALN	Program	Spent	Major
10.405	FARM LABOR HOUSING LOANS AND GRANTS	$2.88M	Yes
14.872	PUBLIC HOUSING CAPITAL FUND	$2.17M	Yes
14.871	SECTION 8 HOUSING CHOICE VOUCHERS	$1.56M	Yes
14.850	PUBLIC HOUSING OPERATING FUND	$1.47M	Yes
10.427	RURAL RENTAL ASSISTANCE PAYMENTS	$803,058	Yes
14.870	RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS	$112,500	Yes

Contacts

Name	Title	Type
PJNKVSTERUN6	Larry Guazon	Auditee
5306710220	Chad Porter	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of the County of Butte (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, Audit of States, Local Governments, and Non-Profit Organizations. 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 not to use the 15% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414.

The Authority has promissory notes with the United States Department of Agriculture Farmer Homes Administration under the Labor Housing Union Loan and 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 Farmer Homes Administration. In accordance with the Uniform Guidance both the rental assistance and the outstanding loan balances are reported as federal expenditure in the accompanying schedule of federal awards. Balances of loans were included in the schedule as follows:

Finding Details

Finding 2025-002

In accordance with 24 CFR section 985.3(h) – Report Submission, PHAs with jurisdiction in metropolitan Fair Market Rent areas have the option of submitting data to HUD with their annual SEMAP certifications on the percent of their tenant-based Section 8 families with children who live in, and who have moved during the PHA fiscal year to, low poverty census tracts in the PHA’s principal operating area. Submission of this information with the SEMAP certification makes the PHA eligible for bonus points under SEMAP. During the audit, we noted that the SEMAP was not completed or filed with HUD as required. The Board approve the SEMAP however the SEMAP was not file with HUD as required. The Authority is a troubled status that is required to file SEMAP annually with HUD until the status is resolved. The Authority was in violation of the Federal Regulation relating to report submissions. We recommend that management implement procedures to ensure compliance with the above regulations as it relaties to all federal awards.