Audit 9537

FY End
2023-06-30
Total Expended
$343.72M
Findings
4
Programs
16
Organization: Louisiana Housing Corporation (LA)
Year: 2023 Accepted: 2024-01-04

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Contacts

Name Title Type
G9MAZAU3T661 Carlos Dickerson Auditee
2257638824 Michelle Cunningham Auditor
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Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the 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 Louisiana Housing Corporation elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Louisiana Housing Corporation under programs of the federal government for the year ended June 30, 2023. The information presented in this Schedule 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Louisiana Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Louisiana Housing Corporation.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the schedule are reported on the 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 Louisiana Housing Corporation elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Assistance Listing Amount Program Title Number Provided Low-Income Home Energy Assistance Program 93.568 $ 87,133,445 Low-Income Household Water Assistance Program 93.499 8,973,802 Weatherization Assistance for Low-Income Persons 81.042 1,491,242 Emergency Solutions Grant Program 14.231 5,857,686 Continuum of Care Program 14.267 12,628,735 Emergency Rental Assistance Program 21.023 12,338,507 $ 128,423,417
Title: RECONCILIATION TO THE FINANCIAL STATEMENTS Accounting Policies: Expenditures reported on the schedule are reported on the 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 Louisiana Housing Corporation elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Per financial statements: Grant funds disbursed (non-operating) $ 261,856,947 Less: State grant funds disbursed (non-operating) (2,287,486) Add: Mortgage loans issued (capitalized) 73,432,308 Add: HUD Risk Sharing Mortgage Loans 103,750 Add: Administrative costs within operating expenses 10,610,597 Total per schedule of expenditures of federal awards $ 343,716,116
Title: PROGRAM INCOME Accounting Policies: Expenditures reported on the schedule are reported on the 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 Louisiana Housing Corporation elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. In accordance with terms of the loans funded under the HOME Program, program income totaled $682,534 during the fiscal year ended June 30, 2023. The income was comprised of mortgage loan collections of principal and interest. The expenditure of the program income is included in the accompanying schedule of expenditures of federal awards.
Title: COOPERATIVE ENDEAVOR Accounting Policies: Expenditures reported on the schedule are reported on the 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 Louisiana Housing Corporation elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. LRS 33:9022 defines “cooperative endeavor” as any form of economic development assistance between and among the State, its local governmental subdivisions, political corporations, public benefit corporations, the United States government or its agencies, or any public or private association, corporation, or individual. The term cooperative endeavor includes cooperative financing, cooperative development, or any form of cooperative economic development activity. The Corporation has entered into a cooperative endeavor agreement with the State of Louisiana Office of Community Development (OCD), Disaster Recovery Program, implementing a Community Development Block Grant. The Office of Community Development (OCD) expenditures totaled $64,414,521 during the fiscal year ended June 30, 2023 and are properly included on the accompanying Schedule of Expenditures of Federal Awards.

Finding Details

Subrecipient Monitoring and Eligibility (Low-Income Home Energy Assistance Program) During the testing of the Low-Income Home Energy Assistance Program (LIHEAP), we were unable to verify that adequate subrecipient monitoring was completed during fiscal year 2023. Subrecipients are responsible for determining eligibility for new applicants; therefore, subrecipient monitoring is required to ensure eligibility verification is completed. Per discussion with Corporation management, on-going monitoring was completed remotely by the Corporation through the available reporting system utilized by subrecipients, by performing desk reviews, budget tracking, and review of supporting documentation. However, monitoring procedures were not properly documented. In addition, annual on-site monitoring of subrecipients was not performed for fiscal year 2023. It is our understanding that the Corporation has resumed on-site monitoring during August 2023. Not performing and documenting adequate subrecipient monitoring could result in noncompliance with the grant agreement. In addition, not performing and documenting adequate subrecipient monitoring could result ineligible recipients receiving assistance, or recipients receiving inaccurate benefit amounts. We recommend the Corporation review the process for performing and documenting completion of subrecipient monitoring, which includes eligibility verification of program participants, to ensure subrecipients are in compliance with grant requirements.
Subrecipient Monitoring and Eligibility (Low-Income Household Water Assistance Program) During the testing of the Low-Income Household Water Assistance Program (LIHWAP), we were unable to verify that adequate subrecipient monitoring was completed during fiscal year 2023. Subrecipients are responsible for determining eligibility for new applicants; therefore, subrecipient monitoring is required to ensure eligibility verification is completed. Per discussion with Corporation management, on-going monitoring was completed remotely by the Corporation through the available reporting system utilized by subrecipients, by performing desk reviews, budget tracking, and review of supporting documentation. However, monitoring procedures were not properly documented. In addition, annual on-site monitoring of subrecipients was not performed for fiscal year 2023. It is our understanding that the Corporation has resumed on-site monitoring during August 2023. Not performing and documenting adequate subrecipient monitoring could result in noncompliance with the grant agreement. In addition, not performing and documenting adequate subrecipient monitoring could result in ineligible recipients receiving assistance, or recipients receiving inaccurate benefit amounts. We recommend the Corporation review the process for performing and documenting completion of subrecipient monitoring, which includes eligibility verification of program participants, to ensure subrecipients are in compliance with grant requirements.
Subrecipient Monitoring and Eligibility (Low-Income Home Energy Assistance Program) During the testing of the Low-Income Home Energy Assistance Program (LIHEAP), we were unable to verify that adequate subrecipient monitoring was completed during fiscal year 2023. Subrecipients are responsible for determining eligibility for new applicants; therefore, subrecipient monitoring is required to ensure eligibility verification is completed. Per discussion with Corporation management, on-going monitoring was completed remotely by the Corporation through the available reporting system utilized by subrecipients, by performing desk reviews, budget tracking, and review of supporting documentation. However, monitoring procedures were not properly documented. In addition, annual on-site monitoring of subrecipients was not performed for fiscal year 2023. It is our understanding that the Corporation has resumed on-site monitoring during August 2023. Not performing and documenting adequate subrecipient monitoring could result in noncompliance with the grant agreement. In addition, not performing and documenting adequate subrecipient monitoring could result ineligible recipients receiving assistance, or recipients receiving inaccurate benefit amounts. We recommend the Corporation review the process for performing and documenting completion of subrecipient monitoring, which includes eligibility verification of program participants, to ensure subrecipients are in compliance with grant requirements.
Subrecipient Monitoring and Eligibility (Low-Income Household Water Assistance Program) During the testing of the Low-Income Household Water Assistance Program (LIHWAP), we were unable to verify that adequate subrecipient monitoring was completed during fiscal year 2023. Subrecipients are responsible for determining eligibility for new applicants; therefore, subrecipient monitoring is required to ensure eligibility verification is completed. Per discussion with Corporation management, on-going monitoring was completed remotely by the Corporation through the available reporting system utilized by subrecipients, by performing desk reviews, budget tracking, and review of supporting documentation. However, monitoring procedures were not properly documented. In addition, annual on-site monitoring of subrecipients was not performed for fiscal year 2023. It is our understanding that the Corporation has resumed on-site monitoring during August 2023. Not performing and documenting adequate subrecipient monitoring could result in noncompliance with the grant agreement. In addition, not performing and documenting adequate subrecipient monitoring could result in ineligible recipients receiving assistance, or recipients receiving inaccurate benefit amounts. We recommend the Corporation review the process for performing and documenting completion of subrecipient monitoring, which includes eligibility verification of program participants, to ensure subrecipients are in compliance with grant requirements.