FAC Explorer

Audit 52561

FY End
2022-12-31
Total Expended
$3.16M
Findings
4
Programs
6
Organization: The Housing and Redevelopment Commission of the City of Aberdeen, Sd (SD)
Year: 2022 Accepted: 2023-05-06
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49759 2022-002 Significant Deficiency - L
49760 2022-002 Significant Deficiency - L
626201 2022-002 Significant Deficiency - L
626202 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $2.52M Yes 1
14.872 Public Housing Capital Fund $251,901 - 0
14.879 Mainstream Vouchers $153,721 Yes 1
14.850 Public and Indian Housing $144,256 - 0
14.231 Emergency Solutions Grant Program $60,264 - 0
14.239 Home Investment Partnerships Program $28,618 - 0

Contacts

Name Title Type
NNJUR1Q5MXH5 Jody Zueger Auditee
6052262321 Tara Engquist Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Note B Significant Accounting PoliciesExpenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. The Commissions summary ofsignificant accounting policies is presented in Note 1 in the Commissions basic financial statements. No federalfinancial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note C Indirect Cost RateThe Commission does not draw for indirect administrative expenses and has not elected to use the 10%de minimus cost rate. Note A Basis of PresentationThe accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Commission under programs of the federal government for the year ended December 31, 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). Because the schedule presents only a selected portion of the operations of the Commission, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Commission. The Commission received federal awards both directly from federal agencies and indirectly through pass-through entities.The accompanying schedule of expenditures of federal awards presents only the activity of federal award programs of the Commission and excludes any federal awards of discretely presented component units.

Finding Details

Finding 2022-002
2022-002 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 COVID-19 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Reporting Significant Deficiency in internal control over Compliance Criteria: The Uniform Financial Reporting Standards (24 CFR section 5.801) require public housings agencies (PHAs) to submit timely GAAP-based unaudited information electronically to HUD with a deadline of two months after the PHAs year-end. Condition: The Commission did not have a tracking and review control in place to ensure that reporting was completed by the deadline, which resulted in the submission being completed after the deadline. Submission was completed on March 10, 2023. Cause: The Commission experienced significant turnover in staff at the end of 2022 and the new staff were not aware of the requirement or the deadline. The staff attempted to complete the submission by the deadline but were unable to validate the submission. Effect: Based on HUD notice PIH-2021-08, late submissions will result in a 1 point deduction from the PHA?s FASS score for every 15 days the submission is late. Questioned Costs: None Repeat Finding from Prior Year(s): No Recommendation: With the turnover in staffing, we realize the new staff were not aware of the deadlines. We recommend that a tracking system be implemented to includes all HUD reporting requirements, deadlines, what is required to be submitted, and to whom items are required to be submitted which is kept in a location to which all accounting staff have access in order to monitor the upcoming deadlines. We also recommend a control process be in place so review of the submission can occur prior to submission for any noticeable errors. Views of Responsible Officials: Management agrees with finding.
Finding 2022-002
2022-002 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 COVID-19 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Reporting Significant Deficiency in internal control over Compliance Criteria: The Uniform Financial Reporting Standards (24 CFR section 5.801) require public housings agencies (PHAs) to submit timely GAAP-based unaudited information electronically to HUD with a deadline of two months after the PHAs year-end. Condition: The Commission did not have a tracking and review control in place to ensure that reporting was completed by the deadline, which resulted in the submission being completed after the deadline. Submission was completed on March 10, 2023. Cause: The Commission experienced significant turnover in staff at the end of 2022 and the new staff were not aware of the requirement or the deadline. The staff attempted to complete the submission by the deadline but were unable to validate the submission. Effect: Based on HUD notice PIH-2021-08, late submissions will result in a 1 point deduction from the PHA?s FASS score for every 15 days the submission is late. Questioned Costs: None Repeat Finding from Prior Year(s): No Recommendation: With the turnover in staffing, we realize the new staff were not aware of the deadlines. We recommend that a tracking system be implemented to includes all HUD reporting requirements, deadlines, what is required to be submitted, and to whom items are required to be submitted which is kept in a location to which all accounting staff have access in order to monitor the upcoming deadlines. We also recommend a control process be in place so review of the submission can occur prior to submission for any noticeable errors. Views of Responsible Officials: Management agrees with finding.
Finding 2022-002
2022-002 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 COVID-19 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Reporting Significant Deficiency in internal control over Compliance Criteria: The Uniform Financial Reporting Standards (24 CFR section 5.801) require public housings agencies (PHAs) to submit timely GAAP-based unaudited information electronically to HUD with a deadline of two months after the PHAs year-end. Condition: The Commission did not have a tracking and review control in place to ensure that reporting was completed by the deadline, which resulted in the submission being completed after the deadline. Submission was completed on March 10, 2023. Cause: The Commission experienced significant turnover in staff at the end of 2022 and the new staff were not aware of the requirement or the deadline. The staff attempted to complete the submission by the deadline but were unable to validate the submission. Effect: Based on HUD notice PIH-2021-08, late submissions will result in a 1 point deduction from the PHA?s FASS score for every 15 days the submission is late. Questioned Costs: None Repeat Finding from Prior Year(s): No Recommendation: With the turnover in staffing, we realize the new staff were not aware of the deadlines. We recommend that a tracking system be implemented to includes all HUD reporting requirements, deadlines, what is required to be submitted, and to whom items are required to be submitted which is kept in a location to which all accounting staff have access in order to monitor the upcoming deadlines. We also recommend a control process be in place so review of the submission can occur prior to submission for any noticeable errors. Views of Responsible Officials: Management agrees with finding.
Finding 2022-002
2022-002 Section 8 Housing Choice Voucher Cluster Federal Financial Assistance Listing 14.879 COVID-19 Mainstream Voucher Program Federal Financial Assistance Listing 14.871 Section 8 Housing Choice Voucher Program Reporting Significant Deficiency in internal control over Compliance Criteria: The Uniform Financial Reporting Standards (24 CFR section 5.801) require public housings agencies (PHAs) to submit timely GAAP-based unaudited information electronically to HUD with a deadline of two months after the PHAs year-end. Condition: The Commission did not have a tracking and review control in place to ensure that reporting was completed by the deadline, which resulted in the submission being completed after the deadline. Submission was completed on March 10, 2023. Cause: The Commission experienced significant turnover in staff at the end of 2022 and the new staff were not aware of the requirement or the deadline. The staff attempted to complete the submission by the deadline but were unable to validate the submission. Effect: Based on HUD notice PIH-2021-08, late submissions will result in a 1 point deduction from the PHA?s FASS score for every 15 days the submission is late. Questioned Costs: None Repeat Finding from Prior Year(s): No Recommendation: With the turnover in staffing, we realize the new staff were not aware of the deadlines. We recommend that a tracking system be implemented to includes all HUD reporting requirements, deadlines, what is required to be submitted, and to whom items are required to be submitted which is kept in a location to which all accounting staff have access in order to monitor the upcoming deadlines. We also recommend a control process be in place so review of the submission can occur prior to submission for any noticeable errors. Views of Responsible Officials: Management agrees with finding.