Audit 48878

FY End

2022-06-30

Total Expended

$7.54M

Findings

2

Programs

5

Organization: Housing Authority of Covington (KY)

Year: 2022 Accepted: 2023-09-26

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
43858	2022-002	Significant Deficiency	Yes	C
620300	2022-002	Significant Deficiency	Yes	C

ALN	Program	Spent	Major	Findings
14.850	Public and Indian Housing	$4.43M	Yes	0
14.872	Public Housing Capital Fund	$2.22M	Yes	1
14.895	Jobs-Plus Pilot Initiative	$684,658	-	0
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$114,582	-	0
14.896	Family Self-Sufficiency Program	$86,651	-	0

Contacts

Name	Title	Type
G573QX9V6RF9	Cynthia Hall	Auditee
8592922186	Ken Saggese	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the 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. The accompanying schedule of expenditures of federal awards includes all federal grant activity of the Housing Authority of Covington and is prepared on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the financial statements.

Finding Details

Finding 2022-002

Reference Number: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Capital Fund Assistance Listing Number: 14.872 Award Period: 2018, 2019, 2020, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria: Cash management and disbursement Capital Funds: To initiate disbursement of Capital Funds, the Authority must submit a voucher for payment through LOCCS. The Authority may only submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received. Once funds are disbursed, i.e., transferred from LOCCS to the Authority?s bank account, the Authority must pay the applicable bill(s) within 3 business days after the deposit of the funds into the Authority?s bank account. The Authority cannot expend nonfederal funds first to pay the applicable bills and then use Capital Funds to reimburse themselves. Condition: There were bill(s) identified in sample of the Capital Funds first paid through nonfederal funds and reimbursed at a later date by use of Capital Funds. We noted bill(s) dated and paid up to and at times exceeding a year before the Capital Funds reimbursed date. Questioned Costs: Not applicable. Effect: These deficiencies result in the possibility that errors or irregularities can exist and not be detected by the Housing Authority?s internal control. Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received.

Finding 2022-002

Reference Number: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Capital Fund Assistance Listing Number: 14.872 Award Period: 2018, 2019, 2020, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria: Cash management and disbursement Capital Funds: To initiate disbursement of Capital Funds, the Authority must submit a voucher for payment through LOCCS. The Authority may only submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received. Once funds are disbursed, i.e., transferred from LOCCS to the Authority?s bank account, the Authority must pay the applicable bill(s) within 3 business days after the deposit of the funds into the Authority?s bank account. The Authority cannot expend nonfederal funds first to pay the applicable bills and then use Capital Funds to reimburse themselves. Condition: There were bill(s) identified in sample of the Capital Funds first paid through nonfederal funds and reimbursed at a later date by use of Capital Funds. We noted bill(s) dated and paid up to and at times exceeding a year before the Capital Funds reimbursed date. Questioned Costs: Not applicable. Effect: These deficiencies result in the possibility that errors or irregularities can exist and not be detected by the Housing Authority?s internal control. Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received.