FAC Explorer

Finding 484730 (2023-021)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-08-21
Audit: 317623
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 utilized the same attorney as the PHA. The attorney information request was not returned by the attorney to the PHA. The PHA will work to ensure response is received in the future in a timely manner so that no similar situation arises within its control and that the PHA will take 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

  • 484717 2023-008
    Material Weakness Repeat
  • 484718 2023-009
    Material Weakness Repeat
  • 484719 2023-010
    Material Weakness Repeat
  • 484720 2023-011
    Material Weakness Repeat
  • 484721 2023-012
    Material Weakness Repeat
  • 484722 2023-013
    Significant Deficiency Repeat
  • 484723 2023-014
    Significant Deficiency Repeat
  • 484724 2023-015
    Material Weakness Repeat
  • 484725 2023-016
    Material Weakness Repeat
  • 484726 2023-017
    Significant Deficiency Repeat
  • 484727 2023-018
    Material Weakness Repeat
  • 484728 2023-019
    Material Weakness Repeat
  • 484729 2023-020
    Significant Deficiency Repeat
  • 1061159 2023-008
    Material Weakness Repeat
  • 1061160 2023-009
    Material Weakness Repeat
  • 1061161 2023-010
    Material Weakness Repeat
  • 1061162 2023-011
    Material Weakness Repeat
  • 1061163 2023-012
    Material Weakness Repeat
  • 1061164 2023-013
    Significant Deficiency Repeat
  • 1061165 2023-014
    Significant Deficiency Repeat
  • 1061166 2023-015
    Material Weakness Repeat
  • 1061167 2023-016
    Material Weakness Repeat
  • 1061168 2023-017
    Significant Deficiency Repeat
  • 1061169 2023-018
    Material Weakness Repeat
  • 1061170 2023-019
    Material Weakness Repeat
  • 1061171 2023-020
    Significant Deficiency Repeat
  • 1061172 2023-021
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $3.80M
14.850 Public and Indian Housing $799,148
14.871 Emergency Housing Vouchers $264,038
14.879 Mainstream Vouchers $56,695
14.872 Public Housing Capital Fund $19,880