FAC Explorer

Finding 390713 (2023-003)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-03-31
Audit: 301395
Organization: Housing Authority of the City of Hope (AR)
Auditor: Miller & Rose P A

AI Summary

  • Core Issue: Expenses charged to the program may not be accurately allocated, particularly payroll and benefits.
  • Impacted Requirements: Proper documentation and review of expense allocations across all programs are necessary.
  • Recommended Follow-Up: Ensure all expense documentation is accessible and review the cost allocation process by June 30, 2024.

Finding Text

Condition and Criteria: Expenses charged to the program should be specific to the operating expenses of the program. Allocation of payroll and related benefits were cited as a concern in the CMR. As a result, costs may not be properly allocated across all programs correctly.Auditor’s Recommendation: Documentation of expenses and the related procurement should be maintained and accessible for review. In addition, the cost allocation of expenses across programs should be reviewed. Grantee Response: After the end of the fiscal year, we reviewed the allocation of salaries and benefits among programs and provided a journal entry to be recorded as part of the audit adjustments. Anticipated Completion Date: June 30, 2024

Corrective Action Plan

Condition and Criteria: Expenses charged to the program should be specific to the operating expenses of the program. Allocation of payroll and related benefits were cited as a concern in the CMR. As a result, costs may not be properly allocated across all programs correctly.Auditor’s Recommendation: Documentation of expenses and the related procurement should be maintained and accessible for review. In addition, the cost allocation of expenses across programs should be reviewed. Grantee Response: After the end of the fiscal year, we reviewed the allocation of salaries and benefits among programs and provided a journal entry to be recorded as part of the audit adjustments. Anticipated Completion Date: June 30, 2024

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 390711 2023-001
    Significant Deficiency
  • 390712 2023-002
    Significant Deficiency
  • 390714 2023-004
    Material Weakness
  • 390715 2023-005
    Significant Deficiency
  • 390716 2023-006
    Significant Deficiency
  • 967153 2023-001
    Significant Deficiency
  • 967154 2023-002
    Significant Deficiency
  • 967155 2023-003
    Significant Deficiency
  • 967156 2023-004
    Material Weakness
  • 967157 2023-005
    Significant Deficiency
  • 967158 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $499,357
14.871 Section 8 Housing Choice Vouchers $412,093
14.872 Public Housing Capital Fund $346,365
14.195 Section 8 Housing Assistance Payments Program $214,618
10.415 Rural Rental Housing Loans $140,753