FAC Explorer

Audit 406354

FY End
2025-09-30
Total Expended
$1.80M
Findings
2
Programs
3
Organization: Scott County Redevelopment and Housing Authority (VA)
Year: 2025 Accepted: 2026-07-02
Auditor: TUCKER BRANDENBURG & COMPANY PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1222775 2025-001 Material Weakness Yes AB
1222776 2025-001 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.08M Yes 1
14.872 PUBLIC HOUSING CAPITAL FUND $444,845 Yes 0
14.850 PUBLIC HOUSING OPERATING FUND $274,303 Yes 1

Contacts

Name Title Type
F48CS2MTB451 Sue Smith Auditee
2764312022 Bob Brandenburg Auditor
No contacts on file

Notes to SEFA

Major program
The schedule of expenditures of federal awards presents the activity of all federal awards programs of the Authority and is presented in accordance with the requirements of Title 2 U.S. code of Federal Regulations Part 200 (2 CFR 200) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). The Authority's reporting entity is defined in Note 1 to the Authority's basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies, are included on the schedule. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority
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.
Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports ex cept for changes made to reflect amounts in accordance with generally accepted accounting principles.
The Authority has not elected to use the 10-percent de minimus indirect cost rate as allowed under Uniform Guidance.

Finding Details

Finding 2025-001
Finding 2025-001 Federal Agency: Department of Housing and Urban Development (HUD) Programs effected: Low-Income Housing Program (CFDA #14.850) Section 8 Housing Choice Vouchers (CFDA #14.871) Questioned Costs: $117,869 Criteria: HUD program funds cannot be used to support or supplement another program. Condition: The Authority has inter-program payable and receivable in excess of $100,000 at year end between the two affected activities as shown of the attached FDS (Lines 144 and 347). Amounts in the current year are more than those at the prior year end. Internal control seems to have slowed the accumulation of the issue. Effect: The Authority is not in compliance with the HUD requirements for the operations of the voucher and public housing programs. Cause The Authority hired an additional staff member for its Voucher program but suffered declines in the number of vouchers issued and the associated administrative fee earned from such. Additionally, the amount of HAP remitted from HUD on a monthly basis has been below the proper level. To make up for this shortfall, the Authority utilized administrative funds for HAP. At no point were HAP funds used for administrative purposes. Recommendation The Authority should address staffing levels for the Voucher program and increase voucher issuance if possible. We also suggest that a request be made to HUD for additional administrative funding. Internal control procedures should be established to detect any excess charges to either HCV or public housing and reflect immediate payment of allocated expenses. Corrective Action Plan The Housing Authority has addressed the staffing levels for the program and is working with HUD to secure reimbursements for under funded HAP remittances. Additionally, the Authority is working with HUD to utilize reserve funds to alleviate the issue. Prior year findings: Finding 2024-1 is listed above as 2025-001.