Audit 46663

FY End

2022-06-30

Total Expended

$4.34M

Findings

4

Programs

7

Organization: Hall County Housing Authority (NE)

Year: 2022 Accepted: 2023-02-20

Auditor: Lutz & Company PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
43832	2022-001	-	-	N
43833	2022-001	-	-	N
620274	2022-001	-	-	N
620275	2022-001	-	-	N

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$2.84M	Yes	1
14.850	Public and Indian Housing - Operating Subsidy	$826,459	Yes	0
14.239	Home Investment Partnerships Program	$533,561	-	0
14.872	Public Housing Capital Fund	$112,877	-	0
14.871	Emergency Housing Voucher	$26,609	Yes	1
14.850	Cares Act Operating Subsidy	$4,797	Yes	0
14.879	Mainstream Vouchers	$0	Yes	0

Contacts

Name	Title	Type
XYKZH2TNM8M1	Barry Hall	Auditee
3083855530	Jake B Klabenes	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Hall County Housing Authority has not elected to use the 10% de minimis cost rate as covered in 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 200.414 Indirect (F&A) Costs. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 533561. HOME Program loan proceeds were distributed to Victory Place, LLC in December 2015. The HOME program funds were used by Victory Place, LLC construct 4 housing units. The funds advanced are repayable to the U.S. Department of Housing & Urban Development (HUD) in the event that the Housing Authority or its subrecipient(Victory Place, LLC) does not maintain the constructed property for lowincome housing for 20 years. If the terms of the agreement are met, the funds are not required to be paid back to HUD. The outstanding HOME Program loan balance, including accrued interest, at June 30, 2022, was $533,561.

Title: General Statement Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Hall County Housing Authority has not elected to use the 10% de minimis cost rate as covered in 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) 200.414 Indirect (F&A) Costs. The accompanying Schedule of Expenditures of Federal Awards includes the grant activity of the Hall County 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 (CFR) 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, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

Finding 2022-001

Criteria: In accordance with 24 CFR 982.405, the Authority must inspect the unit leased to a family at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the Housing Quality Standards. Condition: Through discussion with the Executive Director and evaluation of the tenant files, it was noted that one tenant unit was not being inspected in a timely manner. Cause: The Authority did not perform timely inspections on the unit of one tenant, in line with the requirements of 24 CFR 982.405. Effect: The Authority was not in compliance with 24 CFR 982.405. Recommendation: The Executive Director should familiarize themself with the requirements of 24 CFR 982.405 and verify that tenant unit inspections are performed regularly.

Finding 2022-001

Criteria: In accordance with 24 CFR 982.405, the Authority must inspect the unit leased to a family at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the Housing Quality Standards. Condition: Through discussion with the Executive Director and evaluation of the tenant files, it was noted that one tenant unit was not being inspected in a timely manner. Cause: The Authority did not perform timely inspections on the unit of one tenant, in line with the requirements of 24 CFR 982.405. Effect: The Authority was not in compliance with 24 CFR 982.405. Recommendation: The Executive Director should familiarize themself with the requirements of 24 CFR 982.405 and verify that tenant unit inspections are performed regularly.

Finding 2022-001

Criteria: In accordance with 24 CFR 982.405, the Authority must inspect the unit leased to a family at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the Housing Quality Standards. Condition: Through discussion with the Executive Director and evaluation of the tenant files, it was noted that one tenant unit was not being inspected in a timely manner. Cause: The Authority did not perform timely inspections on the unit of one tenant, in line with the requirements of 24 CFR 982.405. Effect: The Authority was not in compliance with 24 CFR 982.405. Recommendation: The Executive Director should familiarize themself with the requirements of 24 CFR 982.405 and verify that tenant unit inspections are performed regularly.

Finding 2022-001

Criteria: In accordance with 24 CFR 982.405, the Authority must inspect the unit leased to a family at least biennially during assisted occupancy, and at other times as needed, to determine if the unit meets the Housing Quality Standards. Condition: Through discussion with the Executive Director and evaluation of the tenant files, it was noted that one tenant unit was not being inspected in a timely manner. Cause: The Authority did not perform timely inspections on the unit of one tenant, in line with the requirements of 24 CFR 982.405. Effect: The Authority was not in compliance with 24 CFR 982.405. Recommendation: The Executive Director should familiarize themself with the requirements of 24 CFR 982.405 and verify that tenant unit inspections are performed regularly.