Audit 45954

Section III ? Federal Award Findings and Questioned Costs Finding 2022-001 Capital Fund Activities Allowed or Unallowed Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public Housing Capital Fund ALN #: 14.872 Type of Finding: Material Weakness Criteria or specific requirement: All Capital Fund expenditures should be supported by proper documentation. Condition: There were payments made from the 2018, 2019 and 2020 capital fund years to a contractor for services performed. The housing authority was unable to provide a signed contract with the contractor. All expenditures were supported by invoices. Questioned Cost: $0 Context: Cause: The housing authority does not have an engineer assisting with the capital fund projects. All services are provided by the executive director as it relates to the capital funds. Per the executive director, a contract was signed and obtained. However, the file containing that documentation could not be located at the time of the audit. Effect: Not all required documentation was maintained to support Capital Fund expenditures. Repeat Finding: No Recommendation: Management must ensure that all required documentation for Capital Fund expenditures is obtained and maintained. Views of responsible officials and planned corrective actions: Management understands and agrees with this finding. Our procedures are being followed as to the obtaining of all required documentation for Capital Fund expenditures. We will make every effort to put a proper file documentation system in place.

Section III ? Federal Award Findings and Questioned Costs Finding 2022-002 Special Tests and Provisions ? Wage Rate Requirements Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public Housing Capital Fund ALN #: 14.872 Type of Finding: Material Weakness Criteria or specific requirement: Per the Wage Rate Requirements 42 USC 1437j(a) and (b); 24 CFR section 905.308, projects funded with Capital Funds are required to substantiate that those requirements are met. Condition: There were payments made from the 2018, 2019 and 2020 capital fund years to a contractor for services performed. The housing authority was unable to provide copies of the employee interviews documenting that prevailing wages were paid. Questioned Cost: $0 Context: Cause: The housing authority does not have an engineer assisting with the capital fund projects. All services are provided by the executive director as it relates to the capital funds. Per the executive director, the interviews were performed as required. However, the file containing that documentation could not be located at the time of the audit. Effect: Not all required documentation was maintained to support compliance with the Davis-Bacon Act. Repeat Finding: No Recommendation: Management must ensure that all required documentation for Capital Fund requirements is obtained and maintained. Views of responsible officials and planned corrective actions: Management understands and agrees with this finding. Our procedures are being followed as to the obtaining of all required documentation for Capital Fund expenditures. We will make every effort to put a proper file documentation system in place.

Section III ? Federal Award Findings and Questioned Costs Finding 2022-001 Capital Fund Activities Allowed or Unallowed Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public Housing Capital Fund ALN #: 14.872 Type of Finding: Material Weakness Criteria or specific requirement: All Capital Fund expenditures should be supported by proper documentation. Condition: There were payments made from the 2018, 2019 and 2020 capital fund years to a contractor for services performed. The housing authority was unable to provide a signed contract with the contractor. All expenditures were supported by invoices. Questioned Cost: $0 Context: Cause: The housing authority does not have an engineer assisting with the capital fund projects. All services are provided by the executive director as it relates to the capital funds. Per the executive director, a contract was signed and obtained. However, the file containing that documentation could not be located at the time of the audit. Effect: Not all required documentation was maintained to support Capital Fund expenditures. Repeat Finding: No Recommendation: Management must ensure that all required documentation for Capital Fund expenditures is obtained and maintained. Views of responsible officials and planned corrective actions: Management understands and agrees with this finding. Our procedures are being followed as to the obtaining of all required documentation for Capital Fund expenditures. We will make every effort to put a proper file documentation system in place.

Section III ? Federal Award Findings and Questioned Costs Finding 2022-002 Special Tests and Provisions ? Wage Rate Requirements Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public Housing Capital Fund ALN #: 14.872 Type of Finding: Material Weakness Criteria or specific requirement: Per the Wage Rate Requirements 42 USC 1437j(a) and (b); 24 CFR section 905.308, projects funded with Capital Funds are required to substantiate that those requirements are met. Condition: There were payments made from the 2018, 2019 and 2020 capital fund years to a contractor for services performed. The housing authority was unable to provide copies of the employee interviews documenting that prevailing wages were paid. Questioned Cost: $0 Context: Cause: The housing authority does not have an engineer assisting with the capital fund projects. All services are provided by the executive director as it relates to the capital funds. Per the executive director, the interviews were performed as required. However, the file containing that documentation could not be located at the time of the audit. Effect: Not all required documentation was maintained to support compliance with the Davis-Bacon Act. Repeat Finding: No Recommendation: Management must ensure that all required documentation for Capital Fund requirements is obtained and maintained. Views of responsible officials and planned corrective actions: Management understands and agrees with this finding. Our procedures are being followed as to the obtaining of all required documentation for Capital Fund expenditures. We will make every effort to put a proper file documentation system in place.