FAC Explorer

Audit 44512

FY End
2022-12-31
Total Expended
$1.59M
Findings
2
Programs
2
Organization: Pembroke Housing Authority (NC)
Year: 2022 Accepted: 2023-09-28
Auditor: Patterson & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46720 2022-001 - - P
623162 2022-001 - - P

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $1.26M Yes 1
14.872 Public Housing Capital Fund $335,624 - 0

Contacts

Name Title Type
CUQYHEKU9BM3 Ashley Lowry Auditee
9105219711 Laura Bailey Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note A Basis of Presentation: The accompanying schedule of expenditures of federal and state awards(the Schedule) includes the federal and state award activity of the Authority under programs of the federaland state governments for the year ended December 31, 2022. The information in this Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance) and the State Single Audit Implementation Act. Because the Schedule presents onlya selected portion of the operations of the Authority, it is not intended to and does not represent thefinancial position, changes in net assets, or cash flows of the Authority.Note B Summary of Significant Accounting Policies: Expenditures reported on the Schedule arereported on the accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are not allowable orare limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Statement of Condition ? For the Public and Indian Housing program, we reviewed the budget for spending authorizations. During this review, it was discovered that the Authority had not budgeted for $75,247 in expenditures for the year ended December 31, 2022. This resulted in unfavorable budget variances within the program. Criteria ? HUD states that the Authority must budget appropriately for expenditures. Effect ? This violation resulted in an overspending. Cause ? The Authority did not follow proper budgeting procedures. Recommendation ? The Authority should review budget versus actual expenditures on a regular basis and should amend the budget as spending needs arise. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. Budget amendments will be adopted prior to making expenditures that exceed budgeted amounts. Please refer to the corrective action plan on page 66.
Finding 2022-001
Statement of Condition ? For the Public and Indian Housing program, we reviewed the budget for spending authorizations. During this review, it was discovered that the Authority had not budgeted for $75,247 in expenditures for the year ended December 31, 2022. This resulted in unfavorable budget variances within the program. Criteria ? HUD states that the Authority must budget appropriately for expenditures. Effect ? This violation resulted in an overspending. Cause ? The Authority did not follow proper budgeting procedures. Recommendation ? The Authority should review budget versus actual expenditures on a regular basis and should amend the budget as spending needs arise. Views of responsible officials and planned corrective actions: The Authority agrees with this finding. Budget amendments will be adopted prior to making expenditures that exceed budgeted amounts. Please refer to the corrective action plan on page 66.