EIN: 366001311
UEI: RKVCNNLUAPG3
Audited by: Hawkins Ash CPAs, LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 30, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 30, 2026 (123 days from today).
What is a management decision? →Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years. Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: This was a prior year audit finding numbered 2024-002. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: In order to keep cash as accurate as possible, we will work to clear interfund as often as possible. With upcoming development revenue that we will see come in over the next 1-2 years on the non profit side, we will work to prioritize returning funds to the Public Housing Operating Funds. To prevent co-mingling of cash, we will begin a plan to break apart the funds for each program - Spencer, COCC, 3rd and 11th. Each quarter, we access payroll allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. The plan is to reduce the receivable down to $-0- as soon as possible and within 5 years.
Show full finding ▾Hide full finding ▴Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are disallowed from using Operating Funds as funding to other nonfederal programs. Condition: Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years. Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: This was a prior year audit finding numbered 2024-002. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: In order to keep cash as accurate as possible, we will work to clear interfund as often as possible. With upcoming development revenue that we will see come in over the next 1-2 years on the non profit side, we will work to prioritize returning funds to the Public Housing Operating Funds. To prevent co-mingling of cash, we will begin a plan to break apart the funds for each program - Spencer, COCC, 3rd and 11th. Each quarter, we access payroll allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. The plan is to reduce the receivable down to $-0- as soon as possible and within 5 years.
In order to keep cash as accurate as possible, we will work to clear interfund as often as possible. With upcoming development revenue that we will see come in over the next 1-2 years on the non profit side, we will work to prioritize returning funds to the Public Housing Operating Funds. To prevent co-mingling of cash, we will begin a plan to break apart the funds for each program - Spencer, COCC, 3rd and 11th. Each quarter, we access payroll allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. The plan is to reduce the receivable down to $-0- as soon as possible and within 5 years.
2024-002
When reviewing tenant files there were 3 out of 20 files sampled that did not have a timely reexamination completed for the audit period tested. Cause: Due to turnover of staff there were certain public housing tenants that did not have annual reexaminations completed. Effect: The Housing Authority not doing timely recertifications could lead to ineligible tenants receiving subsidized housing. Questioned Costs: Not applicable. Information: Sampling was determined to be statistically valid and the finding is a systematic problem. Prior Year Finding: This was a prior year audit finding numbered 2024-003. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing examinations to ensure they are in compliance with eligibility requirements. Management’s Response: We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
Show full finding ▾Hide full finding ▴Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are required to reexamine family eligibility at least once every 12 months. Condition: When reviewing tenant files there were 3 out of 20 files sampled that did not have a timely reexamination completed for the audit period tested. Cause: Due to turnover of staff there were certain public housing tenants that did not have annual reexaminations completed. Effect: The Housing Authority not doing timely recertifications could lead to ineligible tenants receiving subsidized housing. Questioned Costs: Not applicable. Information: Sampling was determined to be statistically valid and the finding is a systematic problem. Prior Year Finding: This was a prior year audit finding numbered 2024-003. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing examinations to ensure they are in compliance with eligibility requirements. Management’s Response: We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
2024-003
FAC accepted this audit on June 30, 2025 — management decision was due December 30, 2025.
Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years. Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.
Show full finding ▾Hide full finding ▴Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are disallowed from using Operating Funds as funding to other nonfederal programs. Condition: Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years. Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.
In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.
When reviewing tenant files there were 7 out of 24 files sampled that did not have a timely reexamination completed for the audit period tested. Cause: Due to turnover of staff there were certain public housing tenants that did not have annual reexaminations completed. Effect: The Housing Authority not doing timely recertifications could lead to ineligible tenants receiving subsidized housing. Questioned Costs: Not applicable. Information: Sampling was determined to be statistically valid and the finding is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing examinations to ensure they are in compliance with eligibility requirements. Management’s Response: We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
Show full finding ▾Hide full finding ▴Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are required to reexamine family eligibility at least once every 12 months. Condition: When reviewing tenant files there were 7 out of 24 files sampled that did not have a timely reexamination completed for the audit period tested. Cause: Due to turnover of staff there were certain public housing tenants that did not have annual reexaminations completed. Effect: The Housing Authority not doing timely recertifications could lead to ineligible tenants receiving subsidized housing. Questioned Costs: Not applicable. Information: Sampling was determined to be statistically valid and the finding is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing examinations to ensure they are in compliance with eligibility requirements. Management’s Response: We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.
FAC accepted this audit on March 5, 2024 — management decision was due September 5, 2024.
FAC accepted this audit on March 5, 2023 — management decision was due September 5, 2023.
FAC accepted this audit on February 14, 2022 — management decision was due August 14, 2022.
The HA was obligating the full amount of capital funds transferred to operations at the beginning of the year but drawing down the funds monthly throughout the year. Questioned Costs: N/A Cause: The full amount of capital funds transferred to operations was obligated at the beginning of the year. Effect: The LOCCS obligated date is not the same as the voucher request date which is required per 24 CFR section 905.314(1). Prior Year Finding: N/A Information: Sampling was not applicable to this finding and systematic problem. Management?s Response: Going forward the HA will follow the HUD compliance supplement and obligate funds separately as they make draws for operations throughout the year.
Show full finding ▾Hide full finding ▴Program: Public Housing Capital Fund Requirement: Capital Funds transferred to operations (BLI 1406) are not considered obligated until the HA has budgeted and drawn down the funds. Condition: The HA was obligating the full amount of capital funds transferred to operations at the beginning of the year but drawing down the funds monthly throughout the year. Questioned Costs: N/A Cause: The full amount of capital funds transferred to operations was obligated at the beginning of the year. Effect: The LOCCS obligated date is not the same as the voucher request date which is required per 24 CFR section 905.314(1). Prior Year Finding: N/A Information: Sampling was not applicable to this finding and systematic problem. Management?s Response: Going forward the HA will follow the HUD compliance supplement and obligate funds separately as they make draws for operations throughout the year.
Corrective Action Plan Audit Finding Number: 2021-001 ? Capital Funds for Operating Costs Agency: Rock Island Housing Authority Responsible Person, Title: Clint Gingerich, Chief Financial Officer. Completion date: 1/1/2022. Agency Response: Concur. Corrective Action Plan: Going forward the Housing Authority will follow the HUD compliance supplement and obligate funds separately as they make draws for operations throughout the year.
FAC accepted this audit on February 22, 2021 — management decision was due August 22, 2021.
FAC accepted this audit on March 8, 2020 — management decision was due September 8, 2020.
FAC accepted this audit on April 8, 2019 — management decision was due October 8, 2019.
FAC accepted this audit on February 27, 2018 — management decision was due August 27, 2018.
FAC accepted this audit on April 2, 2017 — management decision was due October 2, 2017.
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