FAC Explorer

Audit 8774

FY End
2023-03-31
Total Expended
$2.09M
Findings
4
Programs
4
Organization: Housing Authority of the City of Nogales (AZ)
Year: 2023 Accepted: 2023-12-28
Auditor: Fester & Chapman PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6847 2023-101 Significant Deficiency - ABELN
6848 2023-101 Significant Deficiency - ABELN
583289 2023-101 Significant Deficiency - ABELN
583290 2023-101 Significant Deficiency - ABELN

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $928,412 Yes 1
14.850 Public and Indian Housing $644,865 - 0
14.872 Public Housing Capital Fund $479,862 - 0
14.871 Emergency Housing Choice Vouchers $38,371 Yes 1

Contacts

Name Title Type
JBMSQRN2TGA9 Maritza Cervantes Auditee
5202874183 Ben Hur Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 - FEDERAL ASSISTANCE LISTINGS NUMBER Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (schedule) includes the federal grant activity of the Housing Authority of the City of Nogales, Arizona for the year ended March 31, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority did not elect to use the 10% de minimis indirect cost rate as covered in 2 CFR §200.414. The program titles and Federal Assistance Listings numbers were obtained from the federal or pass-through grantor or the 2022 Federal Assistance Listings. When no Federal Assistance Listings Number has been assigned to a program, the two digit federal agency identifier and the federal contract number were used. When there was no federal contract number, the 2-digit federal agency identifier and the word "unknown" were used.

Finding Details

Finding 2023-101
FAL number and name: 14.871 Section 8 Housing Assistance Payments and 14.EHV Emergency Housing Vouchers Award numbers and years: N/A and 2023 Federal agency: U.S. Department of Housing and Urban Development Compliance requirements: Eligibility Questioned Costs: N/A Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the Authority may not detect or correct in a timely manner. Recommendation: The Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2023-101
FAL number and name: 14.871 Section 8 Housing Assistance Payments and 14.EHV Emergency Housing Vouchers Award numbers and years: N/A and 2023 Federal agency: U.S. Department of Housing and Urban Development Compliance requirements: Eligibility Questioned Costs: N/A Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the Authority may not detect or correct in a timely manner. Recommendation: The Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2023-101
FAL number and name: 14.871 Section 8 Housing Assistance Payments and 14.EHV Emergency Housing Vouchers Award numbers and years: N/A and 2023 Federal agency: U.S. Department of Housing and Urban Development Compliance requirements: Eligibility Questioned Costs: N/A Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the Authority may not detect or correct in a timely manner. Recommendation: The Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.
Finding 2023-101
FAL number and name: 14.871 Section 8 Housing Assistance Payments and 14.EHV Emergency Housing Vouchers Award numbers and years: N/A and 2023 Federal agency: U.S. Department of Housing and Urban Development Compliance requirements: Eligibility Questioned Costs: N/A Criteria: In accordance with 24 CFR 5.601, Public Housing Agencies (PHAs) should maintain effective internal control policies and procedures to determine income eligibility requirements and calculate tenants' rent payments. Condition: The Authority did not have someone other than the preparer review and approve the eligibility determinations. Cause: The Authority lacked proper internal control over the tenants' eligibility determination process. Effect: There is an increased risk that eligibility determinations could contain errors that the Authority may not detect or correct in a timely manner. Recommendation: The Authority should establish policies and procedures to ensure that tenants' eligibility determinations will be reviewed and approved by an employee that is independent of the initial eligibility determination.