Finding 478186 (2023-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-07-10
Audit: 314861
Organization: Jackson Housing Commission (MI)

AI Summary

  • Core Issue: Insufficient data to audit compliance with federal requirements for the Public Housing Capital Fund Program.
  • Impacted Requirements: Compliance with Allowable Activities, Costs, Cash Management, Procurement, and Special Tests.
  • Recommended Follow-Up: Address findings from the HUD Quality Assurance Team's August 2023 review.

Finding Text

Finding 2023-004 – Lack of Data Available to Audit Federal Compliance Requirements Applicable to the Public Housing Capital Fund Program (Material Weakness, Potential Material Noncompliance) Public Housing Program – Assistance Listing No. 14.872; Grant period – fiscal year ended March 31, 2023 Criteria: Supporting documentation should be maintained for the Commission’s compliance with federal compliance requirements applicable to the Public Housing Capital Fund Program. Condition: We did not attain sufficient supporting data in order to audit the Commission’s compliance with the Allowable Activities, Allowable Costs, Cash Management, Procurement and Special Tests and Provisions compliance requirements applicable to the Public Housing Program. Cause: The cause has not been identified. Effect: Inability to provide an audit opinion on compliance with applicable requirements. Questioned Costs: Not applicable. Recommendation: We recommend that the Commission address the issues and findings disclosed in the TFRA performed by the HUD Quality Assurance Team conducted in August 2023. Response: See Corrective Action Plan 2023-004.

Corrective Action Plan

Finding 2023-004 - Lack of Data Available to Audit Federal Compliance Requirements Applicable to the Public Housing Capital Fund Program (Material Weakness, Potential Material Noncompliance) Public Housing Program-Assistance Listing No.14.872; Grant period-fiscal year ended March 31,2023 Condition: We did not attain sufficient supporting data in order to audit the Commission's compliance with the Allowable Activities, Allowable Costs, Cash Management, Procurement and Special Tests and Provisions compliance requirements applicable to the Capital Fund Program . Contact person responsible for corrective action: Arturo Puckerin Corrective action planned: The authority hired a new financial fee accountant to review the internal controls and the state of the Authority's financials as of fiscal year 2023 forward. The authority was able to correct the HUD REAC Financial Data Schedule for the audited financials for fiscal year 2023, record the pension and other post-retirement employment benefits balances and begin work on reconstructing the capital asset register. The authority has integrated proper financial and accounting internal controls through the accounts payable, cash receipts, payroll and accounting entries during fiscal year 2024. The authority has the financial fee accountant work with accounting and program staff to ensure the financials are materially stated monthly, hud reporting is completed on a timely basis with materially stated financial and operational information and the executive staff is reviewing the appropriate financial information. The board approved the fiscal year 2025 budget which was in balance and set the course for continued improvement of financial reporting and proper internal controls over financial reporting. The Authority has reconciled the Capital fund accounting activity to the respective Capital Fund approved budgets by active program years, reconciled drawdowns and properly recorded the expenditures and drawdown by respective grant years and applicability to Asset Management Properties. Anticipated completion date: March 31, 2024

Categories

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment Allowable Costs / Cost Principles Cash Management Material Weakness

Other Findings in this Audit

  • 478185 2023-002
    Material Weakness Repeat
  • 478187 2023-003
    Material Weakness Repeat
  • 1054627 2023-002
    Material Weakness Repeat
  • 1054628 2023-004
    Material Weakness Repeat
  • 1054629 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.57M
14.850 Public and Indian Housing $1.73M
14.872 Public Housing Capital Fund $891,322