FAC Explorer

Audit 891

FY End
2023-03-31
Total Expended
$1.79M
Findings
4
Programs
3
Organization: Housing Authority for the City of Freeport (IL)
Year: 2023 Accepted: 2023-10-20
Auditor: Hawkins Ash Cpa's LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
423 2023-001 Significant Deficiency Yes E
424 2023-002 Significant Deficiency - N
576865 2023-001 Significant Deficiency Yes E
576866 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $986,088 Yes 1
14.872 Public Housing Capital Fund $756,831 Yes 1
14.870 Resident Opportunity and Supportive Services - Service Coordinators $42,665 - 0

Contacts

Name Title Type
JRG7P6JGHHG4 Rachel Greenwood Auditee
8152324171 Monica Hauser Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the full accrual basis of accounting. 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: The Housing Authority of the City of Freeport has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Freeport and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the presentation of, the financial statements.
Title: Disclosure of Other Forms of Assistance Accounting Policies: Expenditures reported on the schedule are reported on the full accrual basis of accounting. 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: The Housing Authority of the City of Freeport has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Housing Authority of the City of Freeport received no federal awards of non-monetary assistance that are required to be disclosed for the fiscal year ended March 31, 2023. The Housing Authority of the City of Freeport had no loans or loan guarantees required to be disclosed for the fiscal year ended March 31, 2023.

Finding Details

Finding 2023-001
Item 2023-001 - Tenant Files Program: Public and Indian Housing Requirement: Proper tenant file maintenance is required by grant agreements and HUD regulations. Condition: Tenant files were not in compliance with HUD regulations. We examined 17 tenant files for Public and Indian Housing and found the following deficiencies: 2 files were missing a signed 9886 form 2 files had income calculation errors 2 files did not have support for income reported on 50058 Questioned Costs: Not determinable. Cause: The Housing Authority is not maintaining proper tenant files. Effect: Rent calculations may not be correct and supporting documentation is missing. Prior Year Finding: 2022-001 Information: Sampling was applicable to this finding and systematic problem. Recommendation: We recommend tenant files be maintained in accordance with HUD regulations.
Finding 2023-002
Item 2023-002 - Capital Fund Draws for Operating Costs Program: Public Housing Capital Fund Requirement: Capital Funds transferred to operations (BLI 1406) are not considered obligated until the HA has budgeted and drawn down the funds. Condition: The HA was obligating the full amount of capital funds transferred to operations at the beginning of the year but drawing down the funds monthly throughout the year. Questioned Costs: N/A Cause: The full amount of capital funds transferred to operations was obligated at the beginning of the year. Effect: The LOCCS obligated date is not the same as the voucher request date which is required per 24 CFR section 905.314(1). Prior Year Finding: N/A Information: Sampling was not applicable to this finding and systematic problem. Recommendation: We recommend the HA obligate the capital funds transferred to operations the same day they submit the voucher request in LOCCS. Management’s Response: Going forward the HA will follow the HUD compliance supplement and obligate the capital funds transferred to operations the same day the voucher request is submitted in LOCCS.
Finding 2023-001
Item 2023-001 - Tenant Files Program: Public and Indian Housing Requirement: Proper tenant file maintenance is required by grant agreements and HUD regulations. Condition: Tenant files were not in compliance with HUD regulations. We examined 17 tenant files for Public and Indian Housing and found the following deficiencies: 2 files were missing a signed 9886 form 2 files had income calculation errors 2 files did not have support for income reported on 50058 Questioned Costs: Not determinable. Cause: The Housing Authority is not maintaining proper tenant files. Effect: Rent calculations may not be correct and supporting documentation is missing. Prior Year Finding: 2022-001 Information: Sampling was applicable to this finding and systematic problem. Recommendation: We recommend tenant files be maintained in accordance with HUD regulations.
Finding 2023-002
Item 2023-002 - Capital Fund Draws for Operating Costs Program: Public Housing Capital Fund Requirement: Capital Funds transferred to operations (BLI 1406) are not considered obligated until the HA has budgeted and drawn down the funds. Condition: The HA was obligating the full amount of capital funds transferred to operations at the beginning of the year but drawing down the funds monthly throughout the year. Questioned Costs: N/A Cause: The full amount of capital funds transferred to operations was obligated at the beginning of the year. Effect: The LOCCS obligated date is not the same as the voucher request date which is required per 24 CFR section 905.314(1). Prior Year Finding: N/A Information: Sampling was not applicable to this finding and systematic problem. Recommendation: We recommend the HA obligate the capital funds transferred to operations the same day they submit the voucher request in LOCCS. Management’s Response: Going forward the HA will follow the HUD compliance supplement and obligate the capital funds transferred to operations the same day the voucher request is submitted in LOCCS.