KENMORE HOUSING AUTHORITYLocal Government

Criteria - HUD?s Uniform Financial Reporting Standards (UFRS) Rule (24 CFR ?5.801) requires Authorities to submit annual financial data to HUD. Specifically, UFRS requires that the financial data is: 1) prepared in accordance with Generally Accepted Accounting Principles (GAAP) as further defined by HUD in supplementary guidance; 2) submitted electronically to HUD through the internet; and 3) submitted in such form and substance as prescribed by HUD. As a separate funding source, the CARES Act supplemental funding (Assistance Listing No. 14.850) must be reported separately on the Financial Data Schedule (FDS). Condition - Prior to audit, the Authority did not report any revenue or expenses related to the CARES act for the year ended June 30, 2021 in a separate column in the FDS. Cause - The Authority combined revenue and expenses in the same general ledger account creating a zero net effect. Effect - Total revenue and total expenses were understated by $40,196 on the schedule of expenditures of federal awards. Questioned Costs - None identified. Recommendation - We recommend the Authority review all compliance requirements and HUD notifications for all new funding sources, specifically, PIH Notice 2020-07 and 2020-24 related to proper reporting of the supplemental CARES Act funds. Management?s Response - (a) Comments on the finding and recommendation: The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action taken. (b) Action taken: The Authority also agrees with the recommendation and will review all compliance requirements and HUD notifications for all new funding sources.