FAC Explorer

Finding 582446 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2023-12-21
Audit: 7904
Organization: Housing Authority of Madisonville (KY)
Auditor: Lane and Company LLC

AI Summary

  • Core Issue: Alcohol was purchased using PHA funds, which is against regulations.
  • Impacted Requirements: Compliance with 2 CFR 200.423, which prohibits using PHA funds for alcohol.
  • Recommended Follow-Up: Implement policies to ensure funds are spent only on allowable costs.

Finding Text

2023-001: Alcohol Purchased with PHA Funds CFDA Title and Number: Public and Indian Housing - 14.850 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Allowable Costs / Cost Principles Criteria: 2 CFR 200.423 prohibits PHAs from purchasing alcohol using PHA funds. Condition: During our testing, we found two instances of alcohol. Cause: Unknown. Effect or Potential Effect: Noncompliance with Uniform Guidance requirement. Questioned Cost: $18 Repeat of a Prior Year Finding: No Recommendation: We recommend that the PHA establish policies and procedures to ensure that all funds are only spent on allowable costs. PHA’s Response: We will do as recommended. Corrective Action Plan: Not provided. Responsible Person: Executive Director James Nichols Jr.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 6004 2023-001
    Significant Deficiency
  • 6005 2023-002
    Significant Deficiency
  • 6006 2023-003
    Significant Deficiency
  • 6007 2023-004
    Significant Deficiency
  • 582447 2023-002
    Significant Deficiency
  • 582448 2023-003
    Significant Deficiency
  • 582449 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $769,879
14.871 Section 8 Housing Choice Vouchers $678,059
14.850 Public and Indian Housing $509,459