Audit 51353

FY End
2022-06-30
Total Expended
$151.42M
Findings
10
Programs
9
Organization: Iowa Finance Authority (IA)
Year: 2022 Accepted: 2022-10-24
Auditor: Eide Bailly LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
50539 2022-001 Significant Deficiency - N
50540 2022-002 Significant Deficiency - L
50541 2022-002 Significant Deficiency - L
50542 2022-002 Significant Deficiency - L
50543 2022-001 Significant Deficiency - L
626981 2022-001 Significant Deficiency - N
626982 2022-002 Significant Deficiency - L
626983 2022-002 Significant Deficiency - L
626984 2022-002 Significant Deficiency - L
626985 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $69.10M - 0
14.231 Emergency Solutions Grant Program $9.74M Yes 0
14.239 Home Investment Partnerships Program $5.11M - 0
14.275 Housing Trust Fund $2.53M - 0
21.023 Emergency Rental Assistance Program $2.47M Yes 1
21.019 Coronavirus Relief Fund $1.81M - 0
14.241 Housing Opportunities for Persons with Aids $702,364 - 0
21.026 Homeowner Assistance Fund $527,139 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $365,000 Yes 1

Contacts

Name Title Type
MNSRLUJXL4W3 Jennifer Pulford Auditee
5154520408 Tara Engquist Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported in the schedule are reported on the accrual basis of accounting, except for subrecipient expenditures, which were accounted for on the cash basis. 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: Note 3 - Indirect Cost Rate The Iowa Finance Authority has not elected to use the 10% de minimis cost rate. Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Iowa Finance Authority (the Authority) under programs of the federal government for the year ended June 30, 2022. The information 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). The schedule excludes the Clean Water and Drinking Water State Revolving Fund Clusters as they are deemed programs of the Iowa Department of Natural Resources and are included on the schedule of expenditures of federal awards for the State of Iowa. 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.

Finding Details

2022-001 U.S. Department of Housing and Urban Development CFDA # 14.231, 2022 Award Year, Award Number: Not Provided Emergency Solutions Grant Program Special Tests and Provisions ? Obligations, Expenditure and Payment Requirements Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Emergency Solutions Grant Program (ESG) guidance requires that States are to obligate fund with 60 days from the date of the grant agreement from HUD. This excluded funding under the CARES Act (ESG-CV). Condition: As part of our testing for special tests and provisions compliance requirements, we noted that the board approval for the obligations was outside the 60-day requirement. The board approval was at 124 days. Cause: With additional funding received for ESG-CV, the grant competition for ESG was pushed back to be able to meet the demands of the ESG-CV. The push back caused the timing of the awards to be delayed for obligation. Effect: Awards were not obligated in a timely manner. Questioned Costs: None. Context/Sampling: Not applicable. Repeat Finding from Prior Year(s): No Recommendation: We recommend the authority ensure they monitor the date of the grant agreement from HUD to ensure the obligations are taking place in the required timeframe. Views of Responsible Officials: Management agrees with the finding.
2022-002 U.S. Department of Treasury CFDA # 21.023, 2022 Award Year, Award Number: Not Provided Emergency Rental Assistance Program (ERA) U.S. Department of Treasury CFDA #21.027 2022 Award Year, award Number: Not Provided Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Quarterly and annual reports are required by Department of Treasury for ERA. Monthly and quarterly reports are by the State of Iowa for CSLFRF. Condition: There was no documented control in place to review reports prior to submission. Cause: Based on reporting requirements being new for CSLFRF, review controls were not implemented until fiscal year 2023. For ERA, another person observed the report being entered but review of the submission was not documented. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: For ERA, we tested 2 of the 4 quarterly reports required for fiscal year 2022. For CSLFRF, we tested all monthly (2) and quarterly (1) reports required. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.
2022-002 U.S. Department of Treasury CFDA # 21.023, 2022 Award Year, Award Number: Not Provided Emergency Rental Assistance Program (ERA) U.S. Department of Treasury CFDA #21.027 2022 Award Year, award Number: Not Provided Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Quarterly and annual reports are required by Department of Treasury for ERA. Monthly and quarterly reports are by the State of Iowa for CSLFRF. Condition: There was no documented control in place to review reports prior to submission. Cause: Based on reporting requirements being new for CSLFRF, review controls were not implemented until fiscal year 2023. For ERA, another person observed the report being entered but review of the submission was not documented. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: For ERA, we tested 2 of the 4 quarterly reports required for fiscal year 2022. For CSLFRF, we tested all monthly (2) and quarterly (1) reports required. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.
2022-002 U.S. Department of Treasury CFDA # 21.023, 2022 Award Year, Award Number: Not Provided Emergency Rental Assistance Program (ERA) U.S. Department of Treasury CFDA #21.027 2022 Award Year, award Number: Not Provided Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Quarterly and annual reports are required by Department of Treasury for ERA. Monthly and quarterly reports are by the State of Iowa for CSLFRF. Condition: There was no documented control in place to review reports prior to submission. Cause: Based on reporting requirements being new for CSLFRF, review controls were not implemented until fiscal year 2023. For ERA, another person observed the report being entered but review of the submission was not documented. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: For ERA, we tested 2 of the 4 quarterly reports required for fiscal year 2022. For CSLFRF, we tested all monthly (2) and quarterly (1) reports required. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.
2022-001 U.S. Department of Housing and Urban Development CFDA # 14.231, 2022 Award Year, Award Number: Not Provided Emergency Solutions Grant Program Special Tests and Provisions ? Obligations, Expenditure and Payment Requirements Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Emergency Solutions Grant Program (ESG) guidance requires that States are to obligate fund with 60 days from the date of the grant agreement from HUD. This excluded funding under the CARES Act (ESG-CV). Condition: As part of our testing for special tests and provisions compliance requirements, we noted that the board approval for the obligations was outside the 60-day requirement. The board approval was at 124 days. Cause: With additional funding received for ESG-CV, the grant competition for ESG was pushed back to be able to meet the demands of the ESG-CV. The push back caused the timing of the awards to be delayed for obligation. Effect: Awards were not obligated in a timely manner. Questioned Costs: None. Context/Sampling: Not applicable. Repeat Finding from Prior Year(s): No Recommendation: We recommend the authority ensure they monitor the date of the grant agreement from HUD to ensure the obligations are taking place in the required timeframe. Views of Responsible Officials: Management agrees with the finding.
2022-001 U.S. Department of Housing and Urban Development CFDA # 14.231, 2022 Award Year, Award Number: Not Provided Emergency Solutions Grant Program Special Tests and Provisions ? Obligations, Expenditure and Payment Requirements Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Emergency Solutions Grant Program (ESG) guidance requires that States are to obligate fund with 60 days from the date of the grant agreement from HUD. This excluded funding under the CARES Act (ESG-CV). Condition: As part of our testing for special tests and provisions compliance requirements, we noted that the board approval for the obligations was outside the 60-day requirement. The board approval was at 124 days. Cause: With additional funding received for ESG-CV, the grant competition for ESG was pushed back to be able to meet the demands of the ESG-CV. The push back caused the timing of the awards to be delayed for obligation. Effect: Awards were not obligated in a timely manner. Questioned Costs: None. Context/Sampling: Not applicable. Repeat Finding from Prior Year(s): No Recommendation: We recommend the authority ensure they monitor the date of the grant agreement from HUD to ensure the obligations are taking place in the required timeframe. Views of Responsible Officials: Management agrees with the finding.
2022-002 U.S. Department of Treasury CFDA # 21.023, 2022 Award Year, Award Number: Not Provided Emergency Rental Assistance Program (ERA) U.S. Department of Treasury CFDA #21.027 2022 Award Year, award Number: Not Provided Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Quarterly and annual reports are required by Department of Treasury for ERA. Monthly and quarterly reports are by the State of Iowa for CSLFRF. Condition: There was no documented control in place to review reports prior to submission. Cause: Based on reporting requirements being new for CSLFRF, review controls were not implemented until fiscal year 2023. For ERA, another person observed the report being entered but review of the submission was not documented. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: For ERA, we tested 2 of the 4 quarterly reports required for fiscal year 2022. For CSLFRF, we tested all monthly (2) and quarterly (1) reports required. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.
2022-002 U.S. Department of Treasury CFDA # 21.023, 2022 Award Year, Award Number: Not Provided Emergency Rental Assistance Program (ERA) U.S. Department of Treasury CFDA #21.027 2022 Award Year, award Number: Not Provided Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Quarterly and annual reports are required by Department of Treasury for ERA. Monthly and quarterly reports are by the State of Iowa for CSLFRF. Condition: There was no documented control in place to review reports prior to submission. Cause: Based on reporting requirements being new for CSLFRF, review controls were not implemented until fiscal year 2023. For ERA, another person observed the report being entered but review of the submission was not documented. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: For ERA, we tested 2 of the 4 quarterly reports required for fiscal year 2022. For CSLFRF, we tested all monthly (2) and quarterly (1) reports required. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.
2022-002 U.S. Department of Treasury CFDA # 21.023, 2022 Award Year, Award Number: Not Provided Emergency Rental Assistance Program (ERA) U.S. Department of Treasury CFDA #21.027 2022 Award Year, award Number: Not Provided Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Quarterly and annual reports are required by Department of Treasury for ERA. Monthly and quarterly reports are by the State of Iowa for CSLFRF. Condition: There was no documented control in place to review reports prior to submission. Cause: Based on reporting requirements being new for CSLFRF, review controls were not implemented until fiscal year 2023. For ERA, another person observed the report being entered but review of the submission was not documented. Effect: Inaccurate information could have been reported or lines with required information could have been missed. Questioned Costs: None. Context/Sampling: For ERA, we tested 2 of the 4 quarterly reports required for fiscal year 2022. For CSLFRF, we tested all monthly (2) and quarterly (1) reports required. Repeat Finding from Prior Year(s): No Recommendation: We recommend a documented review process be implemented prior to report submission to ensure all lines are properly entered and agree to the applicable backup. Views of Responsible Officials: Management agrees with the finding.
2022-001 U.S. Department of Housing and Urban Development CFDA # 14.231, 2022 Award Year, Award Number: Not Provided Emergency Solutions Grant Program Special Tests and Provisions ? Obligations, Expenditure and Payment Requirements Significant Deficiency in Internal Control over Compliance and Non-Compliance Criteria: Emergency Solutions Grant Program (ESG) guidance requires that States are to obligate fund with 60 days from the date of the grant agreement from HUD. This excluded funding under the CARES Act (ESG-CV). Condition: As part of our testing for special tests and provisions compliance requirements, we noted that the board approval for the obligations was outside the 60-day requirement. The board approval was at 124 days. Cause: With additional funding received for ESG-CV, the grant competition for ESG was pushed back to be able to meet the demands of the ESG-CV. The push back caused the timing of the awards to be delayed for obligation. Effect: Awards were not obligated in a timely manner. Questioned Costs: None. Context/Sampling: Not applicable. Repeat Finding from Prior Year(s): No Recommendation: We recommend the authority ensure they monitor the date of the grant agreement from HUD to ensure the obligations are taking place in the required timeframe. Views of Responsible Officials: Management agrees with the finding.