FAC Explorer

Audit 4427

FY End
2023-06-30
Total Expended
$2.41M
Findings
2
Programs
3
Organization: Morgan County Housing Authority (IL)
Year: 2023 Accepted: 2023-11-28
Auditor: Smith Marion & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2628 2023-002 Significant Deficiency - E
579070 2023-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $1.14M - 0
14.871 Section 8 Housing Choice Vouchers $992,658 Yes 1
14.872 Public Housing Capital Fund $273,838 - 0

Contacts

Name Title Type
ZF3GXWCJBVK1 Melissa Marsh Auditee
2172433338 Chad Porter Auditor
No contacts on file

Notes to SEFA

Accounting Policies: A.) Scope of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) presents the expenditures incurred (and related awards received) by Morgan County Housing Authority (MCHA) that are reimbursable under federal programs of federal agencies providing financial assistance awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal funds are 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, state, local or other nonfederal funds are excluded from the accompanying schedule. B.) Basis of Accounting 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 Schedule was prepared from only the accounts of the grant programs and, therefore, does not present the financial position or results of operations of MCHA. C.) Subrecipients During the fiscal year ended June 30, 2023, MCHA disbursed no Federal funds to subrecipients. De Minimis Rate Used: N Rate Explanation: N/A

Finding Details

Finding 2023-002
The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. 6 tenant files of our sample of 20, which results in a 30% fail rate, contained utility allowances that were not the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. The Authority manages 183 Housing Choice Vouchers during the year. As per the AICPA sampling requirements, we tested 20 files for multiple compliance requirements. During the testing period the Authority used a third party management company to handle tenant files and recertifications. As a result of this, procedures to ensure that the appropriate utility allowance was not adhered to on a consistent basis. Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Management agrees.
Finding 2023-002
The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. 6 tenant files of our sample of 20, which results in a 30% fail rate, contained utility allowances that were not the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. The Authority manages 183 Housing Choice Vouchers during the year. As per the AICPA sampling requirements, we tested 20 files for multiple compliance requirements. During the testing period the Authority used a third party management company to handle tenant files and recertifications. As a result of this, procedures to ensure that the appropriate utility allowance was not adhered to on a consistent basis. Tenant payments due to landlords were incorrectly calculated, HAP payments incorrectly calculated. Management should review tenant files to ensure that the appropriate utility allowance is used for the type of unit under contract. Management agrees.