FAC Explorer

Audit 45962

FY End
2022-06-30
Total Expended
$11.44M
Findings
2
Programs
4
Organization: Eastern Regional Housing Authority (NM)
Year: 2022 Accepted: 2023-03-30
Auditor: Kriegel/gray/shaw & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43887 2022-002 - - N
620329 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $1.15M Yes 0
14.898 Ross Supportive Services Programs $173,002 - 0
14.871 Section 8 Housing Choice Vouchers $22,212 Yes 0
14.850 Public and Indian Housing $11,484 - 0

Contacts

Name Title Type
PFRGBKCTVZT1 Irene Murillo Auditee
5756220881 Debbie A Gray Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1. BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Eastern Regional Housing Authority, under programs of the federal government for the year ended June 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 for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Eastern Regional Housing Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Eastern Regional Housing Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
2022-002 Noncompliance with Special Tests and Provisions ? Rolling forward equity balances (Other Non-Compliance) Federal Program Information: Questioned Costs: Finding Agency: Department of Housing and Urban Development None Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Compliance Requirement: Special Tests and Provisions Condition ? The equity balances for Section 8 Housing Choice Vouchers were not properly maintained between Administrative Fee Equity and HAP Equity. Criteria ? The ACC requires PHA to properly account for program activity ? records and accounting transactions support a proper roll-forward of equity. Cause ? Confusion caused by the absorbtion of Tucumcari HA Section 8 program that included balances later determined to be administrative fee equity per discussion with HUD. PHA was accustomed to expending all administrative fees and therefore incorrectly assumed the same for the year of absorbtion of Tucumcari Section 8 Housing. Effect ? Potential that PHA is not funded correctly. Recommendation ? The PHA should correct the account balances. Management Response ? The staff shall correct the account balances, specifically in the HUD FDS and VMS records. Estimated Completion Date: March 31, 2023 Responsible Party: Deputy Director
Finding 2022-002
2022-002 Noncompliance with Special Tests and Provisions ? Rolling forward equity balances (Other Non-Compliance) Federal Program Information: Questioned Costs: Finding Agency: Department of Housing and Urban Development None Program Title: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Compliance Requirement: Special Tests and Provisions Condition ? The equity balances for Section 8 Housing Choice Vouchers were not properly maintained between Administrative Fee Equity and HAP Equity. Criteria ? The ACC requires PHA to properly account for program activity ? records and accounting transactions support a proper roll-forward of equity. Cause ? Confusion caused by the absorbtion of Tucumcari HA Section 8 program that included balances later determined to be administrative fee equity per discussion with HUD. PHA was accustomed to expending all administrative fees and therefore incorrectly assumed the same for the year of absorbtion of Tucumcari Section 8 Housing. Effect ? Potential that PHA is not funded correctly. Recommendation ? The PHA should correct the account balances. Management Response ? The staff shall correct the account balances, specifically in the HUD FDS and VMS records. Estimated Completion Date: March 31, 2023 Responsible Party: Deputy Director