EIN: 376001780
UEI: XFT7HSDNMFQ7
Audited by: Rector, Reeder & Lofton, P.C.
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 26, 2024. 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 March 26, 2025 (525 days ago).
What is a management decision? →Finding 2023-004 – Housing Choice Voucher Tenant Files – Rent Calculations Noncompliance & Significant Deficiency – ALN 14.871 Criteria: Part 24 of the Code of Federal Regulations, Section 982, and the Housing Choice Voucher Guidebook give the requirements and guidance for maintaining the tenant files. HUD requires that certain information be obtained from each resident to properly support the rental calculations and prescribes acceptable methods of tenant income calculation. Additionally, the Agency’s Administrative Plan provides guidance on the requirements of the tenant files and how they must be maintained. Condition and Cause: We reviewed one hundred (100) Housing Choice Voucher tenant files and noted errors as described below: One instance of a 50058 form not in agreement with the HAP register One instance of an annual reexamination conducted late Two instances of unverified income Five instances of a miscalculation of a residents’ income One instance of deductions in a tenant file being incorrect In total the above deficiencies aggregate to a 10% error rate with 8% of the errors being attributed to resident income calculations. Effect: Improper calculation of tenant rental charges can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Choice Voucher program. Recommendation: We recommend that the Authority conduct a file audit of existing tenants to determine whether there are additional deficiencies. We also recommend that the Authority implement a quality control review to adequately monitor compliance with regulations pertaining to the maintenance of tenant files, which was underway with Nan McKay Associates, while the audit was taking place.
Show full finding ▾Hide full finding ▴Finding 2023-004 – Housing Choice Voucher Tenant Files – Rent Calculations Noncompliance & Significant Deficiency – ALN 14.871 Criteria: Part 24 of the Code of Federal Regulations, Section 982, and the Housing Choice Voucher Guidebook give the requirements and guidance for maintaining the tenant files. HUD requires that certain information be obtained from each resident to properly support the rental calculations and prescribes acceptable methods of tenant income calculation. Additionally, the Agency’s Administrative Plan provides guidance on the requirements of the tenant files and how they must be maintained. Condition and Cause: We reviewed one hundred (100) Housing Choice Voucher tenant files and noted errors as described below: One instance of a 50058 form not in agreement with the HAP register One instance of an annual reexamination conducted late Two instances of unverified income Five instances of a miscalculation of a residents’ income One instance of deductions in a tenant file being incorrect In total the above deficiencies aggregate to a 10% error rate with 8% of the errors being attributed to resident income calculations. Effect: Improper calculation of tenant rental charges can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Choice Voucher program. Recommendation: We recommend that the Authority conduct a file audit of existing tenants to determine whether there are additional deficiencies. We also recommend that the Authority implement a quality control review to adequately monitor compliance with regulations pertaining to the maintenance of tenant files, which was underway with Nan McKay Associates, while the audit was taking place.
2023-004 Housing Choice Voucher Tenant Files - Rent Calculations - ALN 14.871 - Noncompliance & Significant Deficiency Action planned in response to finding: The Peoria Housing Authority acknowledges the need to strengthen our controls over tenant file documentation and rent calculations to ensure both accuracy and compliance with HUD regulations and the Peoria Housing Authority's Administrative Plan. In response, we are implementing the following corrective actions: 1. Creation of a Compliance Team The PHA will establish a Compliance Team responsible for developing and enforcing a robust quality assurance plan. This plan will include a 100% audit of all Housing Choice Voucher (HCV) participant files to ensure full compliance with HUD regulations. Any discrepancies identified will be corrected promptly, and corresponding actions will be documented. 2. Ongoing Quality Assurance Audits The Quality Assurance team will perform monthly internal file audits, reviewing 10% of files undergoing recertification and 100% of new admissions to verify accurate rent calculations. The team will also ensure that all required documentation is present, accurate, and maintained in each participant's file. 3. Third-Party Audit In addition to internal audits, the PHA will engage a third-party consultant (Nan McKay) to conduct a one-time comprehensive audit of all participant files. Following this, the consultant will review 10% of participant files monthly to ensure continued compliance with HUD standards. 4. Technical Support Additionally, a third-party consultant (Nan McKay) will provide the HCV Team with technical support required to reconcile file deficiencies noted during the 100% file audit. 5. Staff Training The HCV Department Team, except for our inspectors, will complete Rent Calculation Training and obtain the exam certification, with a minimum requisite passing score of 80%. These measures will enhance the accuracy of rent calculations and ensure adherence to our PHA Administrative Plan and HUD's regulations and timelines. Planned completion date for the corrective action plan: December 31, 2025, and Ongoing Person Responsible: Rachel Pollard and Delta Hoffmeister
2022-003
We examined five (5) contracts for our tests of the internal controls related to the procurement of vendors. The Authority entered into the contract agreement 404-08-23-RFP with both Merit Construction and Hoagland Construction. We noted that the Authority conducted its procurement on the basis of evaluation in the form of an RFP and competitive proposal. We found a few deviations from expectations which are detailed below: The Authority was unable to produce evaluations and scoring for Merit Construction. The Authority was also unable to produce documentation on why Merit Construction was selected for the job. The Authority was unable to produce bid, performance, and payment bonding for Merit Construction Cause: The Authority has experienced significant staff turnover within the past year. It is possible that those items mentioned above were performed and completed, but the Authority is unable to demonstrate them to us. Effect: Noncompliance with local and federal procurement requirements can lead to findings and penalties related to funding. Recommendation: We recommend that the Authority conducts a review of active contracts to ensure that all information related to the procurement of vendors is maintained effectively per the local procurement policy. We also recommend that going forward the Authority monitor this process to ensure that these supporting files are evidenced and maintained.
Show full finding ▾Hide full finding ▴Finding 2023-005 – Procurement – Lack of Support for Procurement of Vendor Noncompliance & Significant Deficiency – ALN 14.850 & 14.872 Criteria: Regulations at 2 CFR Part 200, Uniform Administrative Requirements, outline the procurement standards that are required for recipients of federal grant awards. The nonfederal entity must have and use documented procurement procedures, consistent with state, local, and tribunal laws and regulations and the standards of this section. The nonfederal entity must create and adhere to its local Procurement Policy which has been approved by its board of directors. Condition: We examined five (5) contracts for our tests of the internal controls related to the procurement of vendors. The Authority entered into the contract agreement 404-08-23-RFP with both Merit Construction and Hoagland Construction. We noted that the Authority conducted its procurement on the basis of evaluation in the form of an RFP and competitive proposal. We found a few deviations from expectations which are detailed below: The Authority was unable to produce evaluations and scoring for Merit Construction. The Authority was also unable to produce documentation on why Merit Construction was selected for the job. The Authority was unable to produce bid, performance, and payment bonding for Merit Construction Cause: The Authority has experienced significant staff turnover within the past year. It is possible that those items mentioned above were performed and completed, but the Authority is unable to demonstrate them to us. Effect: Noncompliance with local and federal procurement requirements can lead to findings and penalties related to funding. Recommendation: We recommend that the Authority conducts a review of active contracts to ensure that all information related to the procurement of vendors is maintained effectively per the local procurement policy. We also recommend that going forward the Authority monitor this process to ensure that these supporting files are evidenced and maintained.
2023-005 Procurement - Lack of Support for Procurement of Vendor - ALN 14.850 & 14.872 -Noncompliance & Significant Deficiency Action planned in response to finding: To address the noncompliance and significant deficiency issues related to procurement of vendors, specifically focusing on vendor management, by improving procurement processes and ensuring adequate documentation. 1. Assess Current Procurement Process: Review and evaluate current procurement procedures, guidelines, and documentation requirements to identify areas of improvement and potential gaps. 2. Develop Updated Procurement Policies and Procedures: Establish clear and comprehensive procurement policies and procedures that align with regulatory requirements. Ensure they are well documented and easily accessible to staff. 3. Training and Communication: Conduct training sessions for all relevant staff members on the updated procurement policies and procedures. Provide ongoing support and encourage open communication to address any concerns or questions. 4. Implement a Monitoring System: Establish a system to monitor and track the procurement process, ensuring adherence to policies and regulations. Regularly review and update the system as needed. 5. Conduct Regular Audits and Reviews: Schedule regular audits and reviews to assess compliance with procurement policies and procedures, as well as regulatory requirements. Identify any areas of noncompliance or deficiency and develop corrective action plans. 6. Vendor Management: Implement a vendor management system to ensure proper documentation and tracking of vendor performance. Regularly evaluate and assess vendor relationships to maintain alignment with organizational goals and objectives. 7. Establish Accountability Measures: Clearly define roles and responsibilities for procurement related tasks and establish performance metrics to measure success and identify areas for improvement. Timeline: Peoria Housing Authority will begin assessing the current procurement process immediately and begin making the necessary updates to the procurement policies and procedures. At the end of each quarter, the COO and CFO will review contracts to be sure PHA remains in compliance. This process will be implemented by March 31, 2025. In addition, quarterly progress reports will be submitted to the Executive Office to monitor the implementation of the action plan. Adjustments will be made as needed based on feedback and results from audits, reviews, and staff input. Planned completion date for the corrective action plan: Ongoing, December 31, 2024 Person Responsible: Rachel Pollard and Shawn Joy
FAC accepted this audit on September 20, 2023 — management decision was due March 20, 2024.
The organization does not completely and accurately reconcile the cash accounts on a consistent basis. There were imbalances in the bank reconciliations during the year. Consequently, at year-end there was adjustments to interfund and to cash accounts that should have been corrected during the year. Additionally at the end of the year there was an imbalance in the interfund accounts of around $287,331.69. The PHA did not adequately record prior year audit adjustments but rather corrected the beginning equity and interfund entries. Together with these adjustments and the cash imbalances there was approximately $201,318.69 in prior period adjustments which could not be determined. Effect: The failure to reconcile the checking accounts and interfund accounts can result in misstating the financial operating results for any given period. Cause: The Authority does not properly maintain and perform bank reconciliations and interfund reconciliations on a consistent monthly basis. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Show full finding ▾Hide full finding ▴Finding 2022-001 ? Internal Controls over Cash Reconciliations and Interfund reconciliations ? Significant Deficiency ? Noncompliance and Qualified at Single Audit Level ALN No. 14.850 & 14.871 Criteria: Uniform Administrative Guidance and Standards for Internal Control in the Federal Government requires adequate internal controls over financial reporting to ensure that transactions are properly recorded and accounted for to permit the preparation of reliable financial statements and demonstrate compliance with laws, regulations, and other compliance requirements. Additionally, the Uniform Financial Reporting Standards require adequate internal controls over reporting. Condition: The organization does not completely and accurately reconcile the cash accounts on a consistent basis. There were imbalances in the bank reconciliations during the year. Consequently, at year-end there was adjustments to interfund and to cash accounts that should have been corrected during the year. Additionally at the end of the year there was an imbalance in the interfund accounts of around $287,331.69. The PHA did not adequately record prior year audit adjustments but rather corrected the beginning equity and interfund entries. Together with these adjustments and the cash imbalances there was approximately $201,318.69 in prior period adjustments which could not be determined. Effect: The failure to reconcile the checking accounts and interfund accounts can result in misstating the financial operating results for any given period. Cause: The Authority does not properly maintain and perform bank reconciliations and interfund reconciliations on a consistent monthly basis. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-001 ? Internal Control over Cash Reconciliations ? Significant Deficiency ? Noncompliance and Qualified at Single Audit Level PHA Response: The Peoria Housing Authority (PHA) has a policy to provide reasonable assurance that the Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Subsequent to December 31, 2022, the PHA procured the services of Bedrock Housing Consultants who have addressed the timeliness and accuracy of bank reconciliations as well as the monitoring of interfund accounts to ensure they are balanced. The PHA will resolve this issue during the 2023 calendar year. Corrective Action Plan: The Peoria Housing Authority (PHA) will continue to ensure timely and accurate financial reports. Bedrock Housing Consultants will continue to work with the Finance Department to ensure timely and accurate bank reconciliations are being performed. Staff will continue to participate in training in Housing Authority financial management to understand better the industry?s policies, procedures, and practices. The PHA will reconcile monthly all accounts, including accurate reconciliation of all bank accounts as well as balancing interfunds, and when possible reimbursing the amounts due. Any audit adjustments will be made in the proper period and in the accounts detailed per the auditor?s adjusting journal entry report. This will be addressed during the 2023 calendar year. Person Responsible: Armeca Crawford, Chief Executive Officer Bedrock Housing Consultants in coordination with the PHA Finance Department. Anticipated Completion Date: December 31, 2023
2021-001
Upon review of the capital assets depreciation schedule, we noted several items which are being carried on the books are below the capitalization threshold and have been disposed of but are not written off the books of account. Consequently, there are numerous equipment items which are not physically present at the housing authority. Dispositions should be made annually and approved by the Board of Commissioners. Effect: The detailed capital asset schedule cannot be relied upon to give an accurate listing of equipment and assets owned by the Housing Authority. Consequently, both the cost on the general ledger and corresponding accumulated depreciation is overstated. Cause: The PHA has failed to adequately conduct a complete inventory of all nonexpendable equipment and reconcile this to the detailed property ledger and to the general ledger on a consistent annual basis. Recommendation: We recommend that the Housing Authority reconstruct the capital asset records and verify the equipment items which are physically in existence at PHA property. We also recommend that an annual inventory be conducted and used to reconcile to this property record. Additionally, all dispositions and write-offs of capital assets should be approved by the Board. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Show full finding ▾Hide full finding ▴Finding 2022-002 ? Capital Assets are not properly maintained ? Internal Controls over Property, Plant & Equipment ? Significant Deficiency ? Qualified at Single Audit Level ALN No. 14.850 Criteria: Good internal control practices as provided in the Government Auditing Standards along with the common rule in Federal regulations require that the Capital Assets be supported with detailed capital asset records, and that these be supported by an inventory conducted at least every two years. The results of the inventory should be compared with the capital asset records to give assurance that the books and records of account are adequately supported. Additionally, depreciation should begin on assets as soon as they are placed into service, and old equipment items which have been disposed of should be removed from both the capital asset system and the general ledger. Condition: Upon review of the capital assets depreciation schedule, we noted several items which are being carried on the books are below the capitalization threshold and have been disposed of but are not written off the books of account. Consequently, there are numerous equipment items which are not physically present at the housing authority. Dispositions should be made annually and approved by the Board of Commissioners. Effect: The detailed capital asset schedule cannot be relied upon to give an accurate listing of equipment and assets owned by the Housing Authority. Consequently, both the cost on the general ledger and corresponding accumulated depreciation is overstated. Cause: The PHA has failed to adequately conduct a complete inventory of all nonexpendable equipment and reconcile this to the detailed property ledger and to the general ledger on a consistent annual basis. Recommendation: We recommend that the Housing Authority reconstruct the capital asset records and verify the equipment items which are physically in existence at PHA property. We also recommend that an annual inventory be conducted and used to reconcile to this property record. Additionally, all dispositions and write-offs of capital assets should be approved by the Board. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Finding 2022-002 ? Internal Control over Cash Reconciliations ? Significant Deficiency ? Noncompliance and Qualified at Single Audit Level PHA Response: Peoria Housing Authority (PHA) has a policy to provide reasonable assurance that the Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The PHA understands the importance of accurately tracking both fixed assets and inventory. The PHA will revise policies around fixed assets and inventory and ensure that they are being followed to provide an accurate representation of what the PHA owns. Corrective Action Plan: The Peoria Housing Authority will do a review of the fixed asset listing and bring the necessary dispositions to be approved by the Board of Commissioners to accurately state fixed assets owned by the PHA. This will become an annual process to be completed by the Finance Department in coordination with PHA staff. An annual inventory count will be completed each year at fiscal year-end to ensure that what is reported reflects what is owned by the PHA. An allowance will be set up for any obsolete inventory. This will be addressed during the 2023 calendar year. Person Responsible: Armeca Crawford, Chief Executive Officer Bedrock Housing Consultants in coordination with the PHA Finance Department. Anticipated Completion Date: December 31, 2023
Finding 2022-003 ? Housing Choice Voucher Tenant File deficiencies ? Significant Deficiency and Noncompliance with Eligibility ? Qualified at Single Audit Level ALN No. 14.871 Criteria: The Code of Federal Regulations, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Condition & Cause: Our review of one hundred (100) Housing Choice Voucher tenant files revealed that there was a total of twelve (12) income-related errors, which represent 12% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Housing Choice Voucher population. These consisted mainly of improper deductions, miscalculations, the use of outdated benefit information, and improper annualization of income. The remaining two (2) file errors were a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. The Housing Authority has experienced high employee turnover and there are multiple vacancies in the Housing Choice Voucher department, which contributed to the deficiencies. Effect: The failure to properly calculate Housing Assistance Payments can result in a misstatement of HAP expense and corresponding operating subsidy earned by the Housing Authority, as well as undue financial burden on the tenant. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Housing Choice Voucher program to determine whether there are any misstatements of HAP expense. We also recommend that the Agency increase their monitoring and review of the Housing Choice Voucher program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
Show full finding ▾Hide full finding ▴Finding 2022-003 ? Housing Choice Voucher Tenant File deficiencies ? Significant Deficiency and Noncompliance with Eligibility ? Qualified at Single Audit Level ALN No. 14.871 Criteria: The Code of Federal Regulations, the Housing Authority?s Admin Plan, and specific HUD guidelines in documenting and maintaining the Housing Choice Voucher tenant files. Condition & Cause: Our review of one hundred (100) Housing Choice Voucher tenant files revealed that there was a total of twelve (12) income-related errors, which represent 12% of the total files examined. We were able to numerically extrapolate ten (10) of these errors to the Housing Choice Voucher population. These consisted mainly of improper deductions, miscalculations, the use of outdated benefit information, and improper annualization of income. The remaining two (2) file errors were a result of lack of verification of income. Based on our extrapolation, we feel that the Housing Authority has a significant deficiency in this area of compliance. The Housing Authority has experienced high employee turnover and there are multiple vacancies in the Housing Choice Voucher department, which contributed to the deficiencies. Effect: The failure to properly calculate Housing Assistance Payments can result in a misstatement of HAP expense and corresponding operating subsidy earned by the Housing Authority, as well as undue financial burden on the tenant. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Housing Choice Voucher program to determine whether there are any misstatements of HAP expense. We also recommend that the Agency increase their monitoring and review of the Housing Choice Voucher program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.
2022-003 Section 8 Housing Choice Vouchers Recommendation: We recommend the Authority implement controls to ensure all tenant file documentation is accurate and available, and that management review their procedures relating to PIC uploads to ensure compliance with HUD's requirements and timelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: 1. The PHA will implementing a Compliance Team to create and enforce a quality assurance plan. The plan will include a 100% file audit of HCV Participant Files to ensure full compliance, and PHA will process all corresponding corrections. 2. The Quality Assurance employees will continue to complete 10% of monthly internal file audits for recertification and 100% of new admissions, to ensure accurate calculations. The Quality Assurance team will also ensure that all proper documentation is present and accurate in all participant files. 3. In addition, PHA will contract a third-party consultant to complete a one-time 100% file audit, then test 10% of participant files, monthly. 4. The HCV Department Team, except for our inspectors, will complete Rent Calculation Training and obtain the exam certification, with a minimum requisite passing score of 80% Additionally, the third-party consultant will provide the HCV Team with technical support required to reconcile file deficiencies noted during the 100% file audit. Planned completion date for the corrective action plan: December 31, 2023; Ongoing Person Responsible: Armeca Crawford, Chief Executive Officer
FAC accepted this audit on August 16, 2022 — management decision was due February 16, 2023.
The organization does not completely and accurately reconcile the cash accounts on a consistent basis. There were several items contained in the bank reconciliations which should have been adjusted or cleared out in subsequent months. Consequently, the reconciliations record adjustments and old activity which should not be on the reconciliation month after month. The PHA has failed to identify, adjust and correct the bank reconciliations which has resulted in a misstatement of the cash balance on both the Public Housing and Housing Choice Voucher ledgers. Effect: The failure to reconcile the checking accounts can result in misstating the financial operating results for any given period. Cause: The Authority does not properly maintain and perform bank reconciliations in a concise and simple manner. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above.
Show full finding ▾Hide full finding ▴Finding 2021-001 ? Internal Controls over Cash Reconciliations ? Significant Deficiency ? Qualified at Single Audit Level CFDA No. 14.850 & 14.871 Criteria: Uniform Administrative Guidance and Standards for Internal Control in the Federal Government requires adequate internal controls over financial reporting to ensure that transactions are properly recorded and accounted for to permit the preparation of reliable financial statements and demonstrate compliance with laws, regulations, and other compliance requirements. Additionally, the Uniform Financial Reporting Standards require adequate internal controls over reporting. Condition: The organization does not completely and accurately reconcile the cash accounts on a consistent basis. There were several items contained in the bank reconciliations which should have been adjusted or cleared out in subsequent months. Consequently, the reconciliations record adjustments and old activity which should not be on the reconciliation month after month. The PHA has failed to identify, adjust and correct the bank reconciliations which has resulted in a misstatement of the cash balance on both the Public Housing and Housing Choice Voucher ledgers. Effect: The failure to reconcile the checking accounts can result in misstating the financial operating results for any given period. Cause: The Authority does not properly maintain and perform bank reconciliations in a concise and simple manner. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above.
Finding 2021-001 ? Internal Control over Cash Reconciliations ? Significant Deficiency ? Qualified at Single Audit Level PHA Response: The Peoria Housing Authority (PHA) has a policy to provide reasonable assurance that the Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). During the current, the PHA has collaborated with our software provider to acquire the ability to reconcile the bank accounts within the system eliminating the use of Excel spreadsheets. The PHA has removed old and outdated items, including adjustments from the reconciliation, and developed a standard operating procedure to remove items from the reconciliation that have reached a six-month stale date. The Finance staff has participated in several industry training classes to ensure an understanding of policies and procedures related to public housing. The Director of Finance will work with staff to correct any additional outstanding issues. The PHA will resolve this issue during the 2022 calendar year. Corrective Action Plan: The Peoria Housing Authority (PHA) will continue to ensure timely and accurate financial reports. The Finance Department will continue to work with the software provider to maximize the use of the financial software. Staff will continue to participate in training in Housing Authority financial management to understand better the industry?s policies, procedures, and practices. The Department will reconcile monthly all accounts, including accurate reconciliation of all bank accounts. Staff will ensure the cash presented in the monthly general ledge reflects an accurate accounting of the cash balances with the PHA?s Bank. The PHA Finance Department will develop an Unclaimed Property Policy to account for the outstanding checks so staff can remove them from the bank reconciliation timely. This policy will be implemented on or before December 31, 2022 Person Responsible: Theresa Switzer, Director of Finance Anticipated Completion Date: December 31, 2022
2020-001
FAC accepted this audit on September 20, 2021 — management decision was due March 20, 2022.
The organization does not completely and accurately reconcile the cash accounts on a consistent basis. There were several items contained in the bank reconciliations which should have been adjusted or cleared out in subsequent months. Consequently, the reconciliations record adjustments and old activity which should not be on the reconciliation month after month. Additionally, the Housing Authority has not properly reported the grant activity from the Capital Fund Program. Upon review of the Financial Data Schedule (FDS) not all of the CFP programs were included on the CFP columns of the FDS. The grant program costs should be maintained on a grant program basis and this activity should be identified in the general ledger books of account. Effect: The failure to reconcile the checking accounts and record the capital grant program costs can result in misstating the financial operating results for any given period. Cause: The Authority does not completing understand the capital fund program cost accounting and does not maintain their bank reconciliations in a concise and simple manner. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above.
Show full finding ▾Hide full finding ▴Finding 2020-001 ? Internal Controls over Financial Reconciliation and Reporting ? Significant Deficiency ? Qualified at Single Audit Level CFDA No. 14.850, 14.871 & 14.872 Criteria: Uniform Administrative Guidance and Standards for Internal Control in the Federal Government requires adequate internal controls over financial reporting to ensure that transactions are properly recorded and accounted for to permit the preparation of reliable financial statements and demonstrate compliance with laws, regulations, and other compliance requirements. Additionally, the Uniform Financial Reporting Standards require adequate internal controls over reporting. Condition: The organization does not completely and accurately reconcile the cash accounts on a consistent basis. There were several items contained in the bank reconciliations which should have been adjusted or cleared out in subsequent months. Consequently, the reconciliations record adjustments and old activity which should not be on the reconciliation month after month. Additionally, the Housing Authority has not properly reported the grant activity from the Capital Fund Program. Upon review of the Financial Data Schedule (FDS) not all of the CFP programs were included on the CFP columns of the FDS. The grant program costs should be maintained on a grant program basis and this activity should be identified in the general ledger books of account. Effect: The failure to reconcile the checking accounts and record the capital grant program costs can result in misstating the financial operating results for any given period. Cause: The Authority does not completing understand the capital fund program cost accounting and does not maintain their bank reconciliations in a concise and simple manner. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above.
Finding 2020-001 ? Internal Controls over Financial Reconciliation and Reporting ? Significant Deficiency ? Qualified at Single Audit Level ? CFDA No. 14.850, 14.871 & 14.872 PHA Response: The Peoria Housing Authority (PHA) has a policy to provide reasonable assurance that the Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). During the audit year, the PHA has collaborated with our software provider to establish and maintain the ability to reconcile the bank accounts within the system eliminating the use of Excel spreadsheets. Additionally, the Finance Department is currently in the process of removing all outdated checks and adjustments from the bank reconciliation and will be completed on or before December 31, 2021. The Director of Finance will work with staff to correct any additional outstanding issues. This finding will be resolved on or before December 31, 2021. Corrective Action Plan: The Peoria Housing Authority (PHA) will continue to ensure timely and accurate financial reports. The Finance Department will continue to work with the software provider to maximize the use of the financial software. The Finance Department will continue to participate in training in Housing Authority financial management to better understand the industry?s' policies, procedures, and practices. The Finance staff will attend at least two (2) external financial trainings per year. Additionally, the Department will reconcile monthly all accounts including accurate reconciliation of all bank accounts. We will ensure the cash presented in the monthly General ledge reflects an accurate accounting of the cash balances with the PHA?s Bank with the writing off stale-dated checks every six (6) months and no adjustments will be made to cash and outstanding items will be cleared month to month. Person Responsible: Theresa Switzer, Director of Finance Anticipate Completion Date: December 31, 2021
2019-001
FAC accepted this audit on September 11, 2020 — management decision was due March 11, 2021.
The organization does not have a policy in place to provide reasonable assurance that the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a misstatement of the annual financial statements could occur and not be prevented, detected, or corrected by the Authority?s existing internal controls. Adjustments were needed in order to properly state the Authority?s accounting records. Adjustments are indicative of inadequate internal controls over financial reporting. Specifically, we noted the following inadequacies: ? We noted bank reconciliations were prepared using Excel workbooks and not the Authority?s accounting software. Inadequate oversight over cash accounts resulted in adjustments of $165,011 to properly state cash and & cash equivalents at year end. ? Improper tracking of CFP grants resulted in the HUD Account Receivable balance requiring adjustments of $390,506. This was traced back to prior audit entry that was made but not subsequently reversed. ? The Family Self-Sufficiency liability was not properly recorded in the HCV program. This resulted in adjustments of $204,250 to accurately state the financials. This affects the Housing Assistance Payments expense and the Trust Deposit Liability accounts. ? Historically, the Housing Authority has shown both the HOPE VI and HOME program due to the potential for future program income. The program income is not a part of these programs but potentially the Public Housing program. Consequently, it was inappropriate to show assets and activity on both funds since both of these programs have been closed out. Additionally, there was a $3,022,160 write off of capital assets which had been previously deeded to the tax credit developer. These amounts should have been written off as a gain or loss on disposition at the point of the sell transaction. ? The Housing Authority failed to include the New Southtown Limited Partnership (Riverwest Apartments) into the Discretely Presented Component Units. This development was completed back in July 2000 for 153 multifamily residential units, and was financed with a mortgage note with the Housing Authority, a 99-year ground lease, and contributions from the tax credit owner. Due to the significant financial responsibility the entity should have been included in the consolidated financial statements and financial data schedule of the Housing Authority. ? The Housing Authority has not properly reconciled or recorded Mortgage Note Receivables for both the New Southtown Limited Partnership and the River West South LP. As a result of this there was a $5,817,705 prior year adjustment to properly record all amounts owed the Housing Authority. Effect: The failure to reconcile the checking accounts and record the family self-sufficiency balances to the general ledger control accounts can result in misstating the financial operating results for any given period. Additionally, the failure to disclose assets properly owned by the Housing Authority can result in ineffective decisions by management and the Board of Commissioners. Cause: The Authority did not properly understand the purpose of certain historical programs and funds and their impact on the Housing Authority operations. Also, the Housing Authority did not have the appropriate technical oversight in regards to financial statements and reconciliations. The lack of personnel and technical oversight resulted in errors in financial statement presentation. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above.
Show full finding ▾Hide full finding ▴Finding 2019-001 ? Internal Controls over Financial Reconciliation and Reporting ? Material Weakness ? Qualified Compliance Opinion CFDA No. 14.850, 14.871 & 14.872 Criteria: Uniform Administrative Guidance and Standards for Internal Control in the Federal Government requires adequate internal controls over financial reporting to ensure that transactions are properly recorded and accounted for to permit the preparation of reliable financial statements and demonstrate compliance with laws, regulations, and other compliance requirements. Additionally, the Uniform Financial Reporting Standards require adequate internal controls over reporting. Condition: The organization does not have a policy in place to provide reasonable assurance that the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a misstatement of the annual financial statements could occur and not be prevented, detected, or corrected by the Authority?s existing internal controls. Adjustments were needed in order to properly state the Authority?s accounting records. Adjustments are indicative of inadequate internal controls over financial reporting. Specifically, we noted the following inadequacies: ? We noted bank reconciliations were prepared using Excel workbooks and not the Authority?s accounting software. Inadequate oversight over cash accounts resulted in adjustments of $165,011 to properly state cash and & cash equivalents at year end. ? Improper tracking of CFP grants resulted in the HUD Account Receivable balance requiring adjustments of $390,506. This was traced back to prior audit entry that was made but not subsequently reversed. ? The Family Self-Sufficiency liability was not properly recorded in the HCV program. This resulted in adjustments of $204,250 to accurately state the financials. This affects the Housing Assistance Payments expense and the Trust Deposit Liability accounts. ? Historically, the Housing Authority has shown both the HOPE VI and HOME program due to the potential for future program income. The program income is not a part of these programs but potentially the Public Housing program. Consequently, it was inappropriate to show assets and activity on both funds since both of these programs have been closed out. Additionally, there was a $3,022,160 write off of capital assets which had been previously deeded to the tax credit developer. These amounts should have been written off as a gain or loss on disposition at the point of the sell transaction. ? The Housing Authority failed to include the New Southtown Limited Partnership (Riverwest Apartments) into the Discretely Presented Component Units. This development was completed back in July 2000 for 153 multifamily residential units, and was financed with a mortgage note with the Housing Authority, a 99-year ground lease, and contributions from the tax credit owner. Due to the significant financial responsibility the entity should have been included in the consolidated financial statements and financial data schedule of the Housing Authority. ? The Housing Authority has not properly reconciled or recorded Mortgage Note Receivables for both the New Southtown Limited Partnership and the River West South LP. As a result of this there was a $5,817,705 prior year adjustment to properly record all amounts owed the Housing Authority. Effect: The failure to reconcile the checking accounts and record the family self-sufficiency balances to the general ledger control accounts can result in misstating the financial operating results for any given period. Additionally, the failure to disclose assets properly owned by the Housing Authority can result in ineffective decisions by management and the Board of Commissioners. Cause: The Authority did not properly understand the purpose of certain historical programs and funds and their impact on the Housing Authority operations. Also, the Housing Authority did not have the appropriate technical oversight in regards to financial statements and reconciliations. The lack of personnel and technical oversight resulted in errors in financial statement presentation. Recommendation: We recommend that the Authority reviews their current procedures for monthly reconciliations and the fiscal year close to ensure accuracy of financial reporting to include the items mentioned above.
CORRECTIVE ACTION PLAN Finding 2019-001 ? Internal Controls over Financial Reconciliation and Reporting ? Material Weakness ? Qualified Compliance Opinion Condition: The organization does not have a policy in place to provide reasonable assurance that the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a misstatement of the annual financial statements could occur and not be prevented, detected, or corrected by the Authority?s existing internal controls. Adjustments were needed in order to properly state the Authority?s accounting records. Adjustments are indicative of inadequate internal controls over financial reporting. Specifically, we noted the following inadequacies: ? We noted bank reconciliations were prepared using Excel workbooks and not the Authority?s accounting software. Inadequate oversight over cash accounts resulted in adjustments of $165,011 to properly state cash and & cash equivalents at year end. PHA RESPONSE The Peoria Housing Authority currently has a policy in place to provide reasonable assurance that the financial statements are prepared in accordance with accounting principles generally accepted in the Unites States of America (U.S. GAAP). The Peoria Housing Authority transitioned from Tenmast Software to a new software/accounting system, PHA Web, in September 2019. Peoria Housing Authority finance staff requires additional PHA Web software training within the new accounting system to ensure complete reconciliations of Housing Authority accounts can be completed through the new software system. The Finance team will work with PHA Web to ensure the new software system supports the reconciliation of multiple accounts (i.e. master accounts and sweep accounts). The Director of Finance will work closely with PHA Web to correct issues related to bank reconciliations within PHA Web. The finding will be addressed and resolved during FY 2020. ? Improper tracking of CFP grants resulted in the HUD Account Receivable balance requiring adjustments of $390,506. This was traced back to prior audit entries not made. PHA RESPONSE The Director of Finance will reverse the entry of $390,506 to correct the posting of improper tracking of CFP grants. As a result of this entry, the HUD Account Receivable balance will be correct FY 2020 forward. The finding will be addressed and resolved in FY 2020. ? The Family Self-Sufficiency liability was not properly recorded in the HCV program. This resulted in adjustments of $204,250 to accurately state the financials. This affects the Housing Assistance Payments expense and the Trust Deposit Liability accounts. PHA RESPONSE The Finance Department will make the necessary adjustments to HCV Family Self Sufficiency liability line item/account to ensure the proper recording. The Finance Department completed an adjustment of $204,250 to accurately reflect the financials. Effective immediately, the Housing Assistance Payments expense and the Trust Deposit Liability accounts will be reconciled monthly by the Senior Accountant and verified by the FSS Coordinator. A quality control check will be completed by the Director of Finance quarterly. The finding will be addressed and resolved in FY 2020. ? Historically, the Housing Authority has shown both the HOPE VI and HOME program due to the potential for future program income. The program income is not a part of these programs but potentially the Public Housing program. Consequently, it was inappropriate to show assets and activity on both funds since both of these programs have been closed out. Additionally, there was a $3,022,160 write off of capital assets which had been previously deeded to the tax credit developer. These amounts should have been written off as a gain or loss on disposition at the point of the sell transaction. PHA RESPONSE Corrective adjustments have been made to the HOPE VI and HOME programs to accurately reflect assets and activity of both of the aforementioned funds. Both the HOPE VI and the HOME programs are closed. The $3,022,160 deeded to the tax credit developer has been written off. As a result of these adjustments, the Housing Authority?s financial statements will be accurately stated FY 2020 forward. The finding has been addressed and will be resolved in FY 2020. ? The Housing Authority failed to include the New Southtown Limited Partnership (Riverwest Apartments) into the Discretely Presented Component Units. This development was completed back in July 2000 for 153 multifamily residential units, and was financed with a mortgage note with the Housing Authority, a 99-year ground lease, and contributions from the tax credit owner. Due to the significant financial responsibility the entity should have been included in the consolidated financial statements and financial data schedule of the Housing Authority. PHA RESPONSE The Peoria Housing Authority has made the adjustment to include the New Southtown Limited Partnership (RiverWest Apartments) into the Discretely Presented Components Units based on the significant financial interest the Peoria Housing Authority holds in this project. In prior audits, New Southtown Limited Partnership has been reported as an affiliate of the Peoria Housing Authority. The Director of Finance will ensure any new projects are appropriately categorized and posted appropriately and correctly. This finding has been addressed and will be resolved in FY 2020. ? The Housing Authority has not properly reconciled or recorded Mortgage Note Receivables for both the New Southtown Limited Partnership and the River West South LP. As a result of this there was a $5,817,705 prior year adjustment to properly record all amounts owed the Housing Authority. PHA RESPONSE Effective immediately the Peoria Housing Authority will post accrued interest to ensure the proper reconciliation and recording of Mortgage Note Receivables for New Southtown Limited Partnership and River West South LP The recording of the $5,817,705 prior year adjustments properly records all amounts owed the Peoria Housing Authority and the balance of the receivable is accurately reflected and recorded. This finding has been addressed and resolved in FY 2020. SPECIAL NOTE: The Peoria Housing Authority suspended posting accrued interest to Notes Receivables on the advice of previous auditors. Corrective Action Plan: Peoria Housing Authority?s Corrective Action Plan: The Peoria Housing Authority will continue to ensure timely and accurate financial reports. The Finance Department will work closely with its software provider, PHA Web, to ensure its operating systems supports the reconciliation of the Peoria Housing Authority?s? financial accounts. The Finance Department will ensure monthly meetings with the FSS Coordinators (periodically including the Divisional Directors of FSS) to ensure escrow balances are reconciled timely and accurately. The Director of Finance will conduct quality controls quarterly. The Peoria Housing Authority staff will engage in regularly attending public housing financial management trainings from industry experts to ensure a well-trained Peoria Housing Authority finance staff. Regularly attending up-to-date financial management trainings will serve as a catalyst for ensuring the Peoria Housing Authority finance staff are abreast and receiving up-to-date industry/accounting practices, financial reporting requirements and an understanding of financial options available in expanding affordable housing such LIHTC, RAD, etc. The Housing Authority will ensure trainings include financial reporting requirements for these and other types of mixed finance resources. Contact Person: Theresa Switzer, Director of Finance Anticipated Completion Date: December 31, 2020
2018-001
FAC accepted this audit on September 29, 2019 — management decision was due March 29, 2020.
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2017-001
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2017-002
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2017-003
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FAC accepted this audit on September 26, 2018 — management decision was due March 26, 2019.
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2016-003
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2016-004
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2016-007
FAC accepted this audit on September 25, 2017 — management decision was due March 25, 2018.
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2015-002
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