FAC Explorer

Audit 407697

FY End
2025-12-31
Total Expended
$1.23M
Findings
1
Programs
2
Organization: Housing Authority of the City of Royston (GA)
Year: 2025 Accepted: 2026-07-22
Auditor: HENDERSON & PILLETERI LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1224381 2025-001 Material Weakness Yes H

Programs

ALN Program Spent Major Findings
14.850 PUBLIC HOUSING OPERATING FUND $838,180 Yes 0
14.872 PUBLIC HOUSING CAPITAL FUND $395,233 Yes 1

Contacts

Name Title Type
DN17ER5MKNU4 Krista Bolemon Auditee
7062457277 Roy W. Henderson Jr. Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 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 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Authority has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
2025-001 ALN 14.872 – Public Housing Capital Fund Program – Period of Performance Condition and Criteria: Capital Funds transferred to operations (BLI 1406) are not considered obligated until the PHA has budgeted and drawn down the funds. The voucher request date must occur before those funds are reported as obligated in LOCCS under the Obligation & Expenditure tab (24 CFR section 905.314(1). The Authority has internal control deficiencies over CFP period of performance as they did not draw down BLI 1406 funds before the obligation end date. Amount of Questioned Costs: $395,233 Context: The Authority reported two drawdowns in eLOCCS from BLI 1406 prior to the obligation deadlines in 2023; however, the associated funds were not actually drawn down until 2025 Cause: The PHA did not align eLOCCS reporting with actual cash management practices, leading to early drawdown reporting relative to fund disbursement. Possible contributing factors include insufficient internal controls over eLOCCS entries or inadequate staff training on drawdown timing requirements. Effect: Obligating funds from BLI 1406 before the drawdown creates a compliance deviation and exposes the agency to potential audit findings, risk of questioned costs, and misalignment with HUD cash management regulations. This may affect the PHA’s PHAS scoring under the financial condition indicator if similar deficiencies persist. Auditor’s Recommendation: Ensure that all future eLOCCS drawdowns reflect actual cash requirements in accordance with 24 CFR § 905.314(l), implement internal control procedures to verify the timing of drawdowns relative to obligations and actual payments, and periodically review drawdown and expenditure records to proactively identify and correct discrepancies. Grantee Response: The Authority has agreed to follow the auditor’s recommendation to ensure management stays on top of period of performance dates and cash management procedures by attending regular training sessions and performing reviews of CFP reporting documents to maintain compliance.