FAC Explorer

Audit 41806

FY End
2022-09-30
Total Expended
$964,468
Findings
2
Programs
3
Organization: Housing Authority of the City of Olney (TX)
Year: 2022 Accepted: 2023-04-16
Auditor: Audit Solutions LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48591 2022-002 Material Weakness Yes A
625033 2022-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $486,754 Yes 1
14.872 Public Housing Capital Fund $365,658 Yes 0
14.182 Section 8 New Construction and Substantial Rehabilitation $112,056 - 0

Contacts

Name Title Type
F7P3E5CJMEQ7 Rick Dinwiddie Auditee
9405645639 Shoaib Khar Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Housing Authority of the City of Olney, Texas (Authority) under programs of the federal government for the year ended September 30, 2022. 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 of 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. NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Criteria: HUD has certain regulations and procedures which should be followed by the PHA. Specifically, HUD programs should not advance loans to other HUD or non-HUD programs. Condition: At year end, the PHA had the following inter-program receivable/payable between HUD and USDA programs: HUD Program USDA Program Due From/Due To Public & Indian Hsg. Rural Rental Hsg. Loans Due from Rural Rental Hsg. Loans $ 27,658 $ --- Due to Public & Indian Hsg. $ --- $ (27,658) Questioned Costs: None noted. Effect: Program funds were advanced to non-HUD program. Cause: The Low Rent program is used as a general revolving fund. In other words, the Low Rent program pays for all expenses and other programs reimburses Low Rent on a pro-rated basis. However, the Rural Rental Housing Loan program have not paid its share of expenses to Low Rent program over several years creating a significant balance of amount owed to Low Rent. Recommendation: I recommend that the Authority implement a plan where the Rural Rental Housing program can re-pay Low Rent program in a timely manner. Management?s Response: At a Board Meeting held August 19th, 2021 a resolution was presented and approved creating a repayment agreement between the Rural Rental Program and the Low Rent Program whereas the Rural Rental Program would repay the Low Rent Program $2,787.64 a month with the first payment being made August 31, 2021.
Finding 2022-002
Criteria: HUD has certain regulations and procedures which should be followed by the PHA. Specifically, HUD programs should not advance loans to other HUD or non-HUD programs. Condition: At year end, the PHA had the following inter-program receivable/payable between HUD and USDA programs: HUD Program USDA Program Due From/Due To Public & Indian Hsg. Rural Rental Hsg. Loans Due from Rural Rental Hsg. Loans $ 27,658 $ --- Due to Public & Indian Hsg. $ --- $ (27,658) Questioned Costs: None noted. Effect: Program funds were advanced to non-HUD program. Cause: The Low Rent program is used as a general revolving fund. In other words, the Low Rent program pays for all expenses and other programs reimburses Low Rent on a pro-rated basis. However, the Rural Rental Housing Loan program have not paid its share of expenses to Low Rent program over several years creating a significant balance of amount owed to Low Rent. Recommendation: I recommend that the Authority implement a plan where the Rural Rental Housing program can re-pay Low Rent program in a timely manner. Management?s Response: At a Board Meeting held August 19th, 2021 a resolution was presented and approved creating a repayment agreement between the Rural Rental Program and the Low Rent Program whereas the Rural Rental Program would repay the Low Rent Program $2,787.64 a month with the first payment being made August 31, 2021.