FAC Explorer

Audit 50618

FY End
2022-03-31
Total Expended
$7.99M
Findings
2
Programs
4
Organization: Hopewell Redevelopment and Housing Authority (VA)
Year: 2022 Accepted: 2022-12-29
Auditor: Dooley & Vicars CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46043 2022-001 Significant Deficiency - A
622485 2022-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $675,048 - 0
14.850 Public and Indian Housing $121,132 - 0
14.877 Public Housing Family Self-Sufficiency Under Resident Opportunity and Supportive Services $103,778 - 0
14.871 Section 8 Housing Choice Vouchers $70,080 Yes 0

Contacts

Name Title Type
FAE5NMHRCNU1 Robert Fetrow Auditee
8044585160 Jake Dooley Auditor
No contacts on file

Notes to SEFA

Title: Major Programs Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The (*) to the right of a CFDA number identifies the grant as a major federal program as definedby Uniform Guidance.
Title: Program Costs Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amounts shown as current year expenditures represent only the federal portion of theactual program costs. Actual program costs, including the housing Authority's portion, may bemore than shown.
Title: Award Balance Accounting Policies: The accompanying Schedule of Financial Assistance is prepared on the accrual basis of accounting. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. On the Section 8 programs, the Authority receives annual funds based on an annual estimate ofneed. Unexpended grant funds are available to meet subsequent year HAP shortfalls.

Finding Details

Finding 2022-001
Finding No. 2022-001 Housing Choice Voucher, CFDA #14.871 Low Rent Public Housing, CFDA #14.850 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Noncompliance, Significant Deficiency Condition Testing of interfund receivable balances owed to the Housing Choice Voucher (HCV) and Low Rent Pubic Housing (LRPH) programs from the nonfederal programs indicated potential unallowable uses of HCV and LRPH grant funds. Criteria The HCV program is designed to assist very low-income families, the elderly, and the disabled to afford decent, safe and sanitary housing in the private market. The Operating Fund is designed to make financial assistance available to PHA's for the operation and management of public housing. The use of a centralized revolving fund allows the use of one program's cash to cover expenses of another program which is subsequently reimbursed within a reasonable amount of time. Inter-program due to and due from balances, not reconciled on a timely basis, indicate the existence of temporary loans and are unallowable. Cause The Business Activities and State and Local programs had not generated sufficient cash required to reimburse the revolving fund for expenses incurred on its behalf before the end of the operating cycle. Effect It appears HCV funds in the amount of $157,990 and LRPH funds in the amount of $836,990 were used to cover development costs of non-federal programs. This is considered an unallowable use of grant funds and may be subject to repayment. Questioned Costs N/A Recommendation We recommend the Authority reconcile and settle interfund balances on a monthly basis. In addition, we recommend the Authority establish controls to restrict interfund transactions for which there is no certainty of reimbursement before the accounting period cut-off.
Finding 2022-001
Finding No. 2022-001 Housing Choice Voucher, CFDA #14.871 Low Rent Public Housing, CFDA #14.850 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Noncompliance, Significant Deficiency Condition Testing of interfund receivable balances owed to the Housing Choice Voucher (HCV) and Low Rent Pubic Housing (LRPH) programs from the nonfederal programs indicated potential unallowable uses of HCV and LRPH grant funds. Criteria The HCV program is designed to assist very low-income families, the elderly, and the disabled to afford decent, safe and sanitary housing in the private market. The Operating Fund is designed to make financial assistance available to PHA's for the operation and management of public housing. The use of a centralized revolving fund allows the use of one program's cash to cover expenses of another program which is subsequently reimbursed within a reasonable amount of time. Inter-program due to and due from balances, not reconciled on a timely basis, indicate the existence of temporary loans and are unallowable. Cause The Business Activities and State and Local programs had not generated sufficient cash required to reimburse the revolving fund for expenses incurred on its behalf before the end of the operating cycle. Effect It appears HCV funds in the amount of $157,990 and LRPH funds in the amount of $836,990 were used to cover development costs of non-federal programs. This is considered an unallowable use of grant funds and may be subject to repayment. Questioned Costs N/A Recommendation We recommend the Authority reconcile and settle interfund balances on a monthly basis. In addition, we recommend the Authority establish controls to restrict interfund transactions for which there is no certainty of reimbursement before the accounting period cut-off.