FAC Explorer

Finding 396732 (2022-021)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-05-15
Audit: 306360
Organization: Housing Authority of the City of Fayetteville (IL)
Auditor: Barrale Renshaw CPAS and Advisors LLC

AI Summary

  • Core Issue: The Fayetteville Housing Authority's attorney did not respond to auditor inquiries regarding pending litigation.
  • Impacted Requirements: Compliance with federal award criteria requiring attorney responses for accurate financial disclosures.
  • Recommended Follow-Up: Ensure the Housing Authority obtains the necessary response from their attorney to disclose any potential litigation.

Finding Text

2022-021 Unresponsive Attorney Federal Awards: 14-850 Public and Indian Housing Low Rent Program 14-872 Capital Fund Program 14-870 Housing Choice Vouchers Criteria: An attorney for a Housing Authority is required to respond to auditor inquiries on behalf of the Housing Authority. Condition: During our audit we requested a description of any and all material pending or threatened litigation, claims and assessments (excluding unasserted claims and assessments). Questioned Costs: Unknown Effect: The Fayetteville Housing Authority may be subject to pending or actual litigation which should be disclosed in the notes to the financial statements. Cause: Fayetteville Housing Authority management did not ensure a response from their attorney. Recommendation: We recommend that the Fayetteville Housing Authority properly obtain the requested response from its attorney.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: At the time of the inquiry, FHA Development, Inc., which is a non-profit partner of the PHA and whose properties were managed by the PHA, changed attorneys. The Executive Director of the PHA did so without the consent of the Board. A relationship no longer exists between the attorney and the PHA or FHA Development, Inc. The PHA will work to ensure no similar situation arises within its control and that the PHA will take all legal remedies available should the attorney or any future attorney fail to respond to audit inquiries.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 396719 2022-008
    Material Weakness Repeat
  • 396720 2022-009
    Material Weakness Repeat
  • 396721 2022-010
    Material Weakness Repeat
  • 396722 2022-011
    Material Weakness Repeat
  • 396723 2022-012
    Material Weakness Repeat
  • 396724 2022-013
    Significant Deficiency Repeat
  • 396725 2022-014
    Significant Deficiency Repeat
  • 396726 2022-015
    Material Weakness Repeat
  • 396727 2022-016
    Material Weakness Repeat
  • 396728 2022-017
    Significant Deficiency Repeat
  • 396729 2022-018
    Material Weakness Repeat
  • 396730 2022-019
    Material Weakness Repeat
  • 396731 2022-020
    Significant Deficiency Repeat
  • 973161 2022-008
    Material Weakness Repeat
  • 973162 2022-009
    Material Weakness Repeat
  • 973163 2022-010
    Material Weakness Repeat
  • 973164 2022-011
    Material Weakness Repeat
  • 973165 2022-012
    Material Weakness Repeat
  • 973166 2022-013
    Significant Deficiency Repeat
  • 973167 2022-014
    Significant Deficiency Repeat
  • 973168 2022-015
    Material Weakness Repeat
  • 973169 2022-016
    Material Weakness Repeat
  • 973170 2022-017
    Significant Deficiency Repeat
  • 973171 2022-018
    Material Weakness Repeat
  • 973172 2022-019
    Material Weakness Repeat
  • 973173 2022-020
    Significant Deficiency Repeat
  • 973174 2022-021
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $686,857
14.U03 Component Unit- Blended $285,926
14.871 Section 8 Housing Choice Vouchers $72,983
14.U02 Tenant Based Rental Assistance $30,150
14.879 Mainstream Vouchers $7,872
14.U01 Esg- Covid $3,976
14.850 Public Housing Cares Act Fund $414
14.872 Public Housing Capital Fund $0