FAC Explorer

Audit 54267

FY End
2022-09-30
Total Expended
$801,759
Findings
2
Programs
2
Organization: McKenzie Housing Authority (TN)
Year: 2022 Accepted: 2023-03-29
Auditor: Crs CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58383 2022-002 - - N
634825 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $417,635 Yes 1
14.872 Public Housing Capital Fund $344,589 - 0

Contacts

Name Title Type
JQJ3NP9THVE4 Barbara Cooper Auditee
7313525335 Katie Little Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule presents the expenditures incurred (and related awards received) by McKenzie Housing Authority(the "Authority") that are reimbursed under federal programs of federal agencies providing financial assistance. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal funds are reported in theaccompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion ofthe program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule.The accompanying schedule of expenditures of federal awards includes the federal grant activity of McKenzie Housing Authorityand is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with therequirements of Uniform Guidance, therefore, some amounts presented in this schedule may differ from amounts presented in orused in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
2022-002 Lack of Depository Agreements (Noncompliance) Condition and Cause: The Authority does not have signed depository agreements on file for deposits with financial institutions. Criteria: Public Housing Authorities are required to enter into General Depository Agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form as required by HUD in the ACC. The agreements serve as safeguards for federal funds and provide third party rights to HUD (Section 9 of the ACC). Effect: The Authority is not in compliance with HUD requirements. Recommendation: The Authority should obtain, complete, and submit the required depository agreement (HUD-51999 or similar agreement) as soon as possible. Management Response: Management agrees to research the requirement including discussing the requirement with a HUD representative in order to determine the best approach to becoming compliant.
Finding 2022-002
2022-002 Lack of Depository Agreements (Noncompliance) Condition and Cause: The Authority does not have signed depository agreements on file for deposits with financial institutions. Criteria: Public Housing Authorities are required to enter into General Depository Agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form as required by HUD in the ACC. The agreements serve as safeguards for federal funds and provide third party rights to HUD (Section 9 of the ACC). Effect: The Authority is not in compliance with HUD requirements. Recommendation: The Authority should obtain, complete, and submit the required depository agreement (HUD-51999 or similar agreement) as soon as possible. Management Response: Management agrees to research the requirement including discussing the requirement with a HUD representative in order to determine the best approach to becoming compliant.