FAC Explorer

Audit 7904

FY End
2023-03-31
Total Expended
$1.96M
Findings
8
Programs
3
Organization: Housing Authority of Madisonville (KY)
Year: 2023 Accepted: 2023-12-21
Auditor: Lane and Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6004 2023-001 Significant Deficiency - B
6005 2023-002 Significant Deficiency - N
6006 2023-003 Significant Deficiency - N
6007 2023-004 Significant Deficiency - N
582446 2023-001 Significant Deficiency - B
582447 2023-002 Significant Deficiency - N
582448 2023-003 Significant Deficiency - N
582449 2023-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.872 Public Housing Capital Fund $769,879 - 0
14.871 Section 8 Housing Choice Vouchers $678,059 Yes 3
14.850 Public and Indian Housing $509,459 - 1

Contacts

Name Title Type
TC5MJK7GKSD7 Joel Lane Auditee
8594989915 Joel Lane Auditor
No contacts on file

Notes to SEFA

Title: Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Authority’s federal award program and does present transactions that would be included in financial statements of the Authority presented on the accrual basis of accounting as contemplated by generally accepted accounting principles. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: not used The accompanying schedule of expenditures of federal awards is a summary of the activity of the Authority’s federal award program and does present transactions that would be included in financial statements of the Authority presented on the accrual basis of accounting as contemplated by generally accepted accounting principles. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited to reimbursement.

Finding Details

Finding 2023-001
2023-001: Alcohol Purchased with PHA Funds CFDA Title and Number: Public and Indian Housing - 14.850 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Allowable Costs / Cost Principles Criteria: 2 CFR 200.423 prohibits PHAs from purchasing alcohol using PHA funds. Condition: During our testing, we found two instances of alcohol. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: $18 Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all funds are only spent on allowable costs. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-002
CFDA Title and Number: Section 8 Housing Choice Voucher - 14.871 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Special Tests and Provisions Criteria: 24 CFR 908.101 requires all tenant files to include a copy of HUD Form 50058. Condition: During our testing, we found instances of missing HUD Forms 50058. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: None Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all tenant files contain a copy of HUD Form 50058. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-003
CFDA Title and Number: Section 8 Housing Choice Voucher - 14.871 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Special Tests and Provisions Criteria: 24 CFR 960.259c requires all tenant files to include independent verification of income. Condition: During our testing, we found instances of missing independent verifications of income. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: None Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all tenant files contain independent verification of income. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-004
CFDA Title and Number: Section 8 Housing Choice Voucher - 14.871 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Special Tests and Provisions Criteria: 24 CFR 5.609 requires that all income be used to calculate rent. Condition: During our testing, we found an instance of independent verification of income being in the file that was not included on HUD Form 50058 that was used to calculate rent. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: None Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all tenant files contain all sources of income. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-001
2023-001: Alcohol Purchased with PHA Funds CFDA Title and Number: Public and Indian Housing - 14.850 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Allowable Costs / Cost Principles Criteria: 2 CFR 200.423 prohibits PHAs from purchasing alcohol using PHA funds. Condition: During our testing, we found two instances of alcohol. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: $18 Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all funds are only spent on allowable costs. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-002
CFDA Title and Number: Section 8 Housing Choice Voucher - 14.871 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Special Tests and Provisions Criteria: 24 CFR 908.101 requires all tenant files to include a copy of HUD Form 50058. Condition: During our testing, we found instances of missing HUD Forms 50058. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: None Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all tenant files contain a copy of HUD Form 50058. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-003
CFDA Title and Number: Section 8 Housing Choice Voucher - 14.871 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Special Tests and Provisions Criteria: 24 CFR 960.259c requires all tenant files to include independent verification of income. Condition: During our testing, we found instances of missing independent verifications of income. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: None Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all tenant files contain independent verification of income. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.
Finding 2023-004
CFDA Title and Number: Section 8 Housing Choice Voucher - 14.871 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Special Tests and Provisions Criteria: 24 CFR 5.609 requires that all income be used to calculate rent. Condition: During our testing, we found an instance of independent verification of income being in the file that was not included on HUD Form 50058 that was used to calculate rent. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: None Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all tenant files contain all sources of income. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.