FAC Explorer

Finding 1236241 (2025-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-09-23
Audit: 411839
Organization: Housing Authority of the City of Hugo (OK)
Auditor: AUDIT SOLUTIONS LLC

AI Summary

  • Core Issue: The Authority improperly recorded interfund transactions, violating HUD regulations that prohibit loans between programs.
  • Impacted Requirements: Compliance with HUD's guidelines on inter-program financial transactions is essential to avoid material weaknesses.
  • Recommended Follow-Up: Review and adjust interfund accounts to ensure adherence to HUD regulations and prevent future discrepancies.

Finding Text

Interfund Receivable / Payable (same as financial statement finding #2025-003). Interfund Receivable / Payable. Criteria: HUD has certain regulations and procedures which should be followed by the Authority. Specifically, HUD project/programs should not advance or accept loans to/from other HUD or non-HUD programs. Condition: At year end, the Authority had the following inter-program receivable/payable between programs: Program Due From (Due To) Low Rent $ 142,378 $ --- Section 8 Housing Choice Voucher --- (142,378) $ 142,378 $ (142,378) Federal Awards: 14.850 – Public Housing Operating Fund Compliance: Activities Allowed or Unallowed Type: Material weakness

Corrective Action Plan

Interfund Receivable / Payable (same as financial statement finding #2025-003). HCV admin fees were paid from the PH Operations account and re-imbursed by the HCV program on a yearly basis. A check will be written from the HCV account to the PH account to cover a majority of the difference. Moving forward, reconciliation will occur quarterly, and payment on the balance will be made. Contact person: Ryandal Gilmore, Executive Director. Anticipated completion date: Implemented and ongoing

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $824,616
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $719,894
14.872 PUBLIC HOUSING CAPITAL FUND $581,732