EIN: 410940032
UEI: KAMVXNYDJZX3
Audited by: Collins & Associates S.C.
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 December 22, 2025. 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 June 22, 2026 (69 days ago).
What is a management decision? →FAC accepted this audit on December 24, 2024 — management decision was due June 24, 2025.
FAC accepted this audit on January 9, 2024 — management decision was due July 9, 2024.
FAC accepted this audit on December 6, 2022 — management decision was due June 6, 2023.
During the year ended March 31, 2022, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments. ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees? hours, and processes payroll. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA?s ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical.
Show full finding ▾Hide full finding ▴Audit Finding 2022-001 ? Lack of Segregation of Accounting Duties Criteria or Specific Requirement: Internal control that supports the HRA?s ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: During the year ended March 31, 2022, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments. ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees? hours, and processes payroll. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA?s ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical.
2022-001 - Lack of Segregation of Accounting Duties CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2023. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
2021-001
During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA?s compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with procurement compliance requirements.
Show full finding ▾Hide full finding ▴Audit Finding 2022-002 ? Procurement Requirements Criteria or Specific Requirement: According to compliance requirements, HRA procurements under federal awards must be made in compliance with applicable federal regulations and other procurement requirements specific to an award or subaward. Condition: During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA?s compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with procurement compliance requirements.
2022-002 ? Procurement Requirements CORRECTIVE ACTION PLAN (CAP): 1.Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2.Actions Planned in Response to Finding: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented. 3.Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4.Planned Completion Date for CAP: The planned completion date is March 31, 2023. 5.Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
2021-002
FAC accepted this audit on September 20, 2021 — management decision was due March 20, 2022.
During the year ended March 31, 2021, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees' hours, and processes payroll. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures.
Show full finding ▾Hide full finding ▴Audit Finding 2021-001 ? Lack of Segregation of Accounting Duties Criteria or Specific Requirement: Internal control that supports the HRA's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: During the year ended March 31, 2021, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees' hours, and processes payroll. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures.
"2021-001 - Lack of Segregation of Accounting Duties CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2022. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan. "
2020-001
During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA's compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with procurement compliance requirements. Management's Response: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented.
Show full finding ▾Hide full finding ▴Audit Finding 2021-002 ? Procurement Requirements Criteria or Specific Requirement: According to compliance requirements, HRA procurements under federal awards must be made in compliance with applicable federal regulations and other procurement requirements specific to an award or subaward. Condition: During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA's compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with procurement compliance requirements. Management's Response: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented.
"2021-002 ? Procurement Requirements CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2022. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan. "
2020-004
During testing, we noted supporting documentation for one of the individuals tested was not in accordance the HRA?s internal control policies. Context: This finding impacts HRA's internal control over compliance with the eligibility requirements. Questioned Costs: None. Effect or Potential Effect: Insufficient internal controls over eligibility requirements could result in noncompliance. Cause: The HRA did not ensure documentation to support eligibility was in accordance with internal control policies for one of the individuals tested. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with eligibility compliance requirements. Management's Response: The HRA will ensure internal controls over compliance with eligibility compliance requirements are designed and implemented.
Show full finding ▾Hide full finding ▴Audit Finding 2021-003 ? Internal Control Over Eligibility Requirements Criteria or Specific Requirement: The HRA is required to have internal controls in place to ensure participants in the public housing program meet eligibility requirements. Condition: During testing, we noted supporting documentation for one of the individuals tested was not in accordance the HRA?s internal control policies. Context: This finding impacts HRA's internal control over compliance with the eligibility requirements. Questioned Costs: None. Effect or Potential Effect: Insufficient internal controls over eligibility requirements could result in noncompliance. Cause: The HRA did not ensure documentation to support eligibility was in accordance with internal control policies for one of the individuals tested. Recommendation: We recommend the HRA design and implement internal controls to ensure compliance with eligibility compliance requirements. Management's Response: The HRA will ensure internal controls over compliance with eligibility compliance requirements are designed and implemented.
"2021-003 ? Internal Control Over Eligibility Requirements CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: The HRA will ensure internal controls over compliance with eligibility compliance requirements are designed and implemented. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2022. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
FAC accepted this audit on September 9, 2020 — management decision was due March 9, 2021.
During the year ended March 31, 2020, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees' hours, and processes payroll. There is also no documented review of the payroll registers or contracts with approved pay rates. ? The bank reconciliation is completed by the contracted fee accountant, however, there is no documented review of the bank reconciliation. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures.
Show full finding ▾Hide full finding ▴Audit Finding 2020-001 ? Lack of Segregation of Accounting Duties Criteria or Specific Requirement: Internal control that supports the HRA's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: During the year ended March 31, 2020, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees' hours, and processes payroll. There is also no documented review of the payroll registers or contracts with approved pay rates. ? The bank reconciliation is completed by the contracted fee accountant, however, there is no documented review of the bank reconciliation. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures.
2020-001 - Lack of Segregation of Accounting Duties CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2021. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
2019-001
Housing quality standards require the HRA to inspect all units and make any necessary corrections within 24 hours or 30 days, depending on the reason of a failed inspection. We noted documentation available showed that all inspections passed during fiscal years 2019 and 2020, however, per discussions with administration and maintenance staff, there should have been some inspections that failed, based on their knowledge of some of the housing conditions. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures. Context: This finding impacts HRA's compliance with the housing quality standards. Questioned Costs: None. Effect or Potential Effect: The lack of proper inspections could result in property being unsafe or unsanitary. Cause: This is a repeat finding from last year as the new administration did not have time to correct the finding in fiscal year 2020. The HRA appears to not be appropriately inspecting properties. Recommendation: We recommend the HRA ensure qualified individuals are completing inspections so the HRA can be in compliance with housing quality standards. Management's Response: Since the audit, the HRA is conducting HQS inspections yearly to ensure that they are in compliance with HQS standards. The Executive Director is following up to ensure that the fail items are re-inspected to ensure they pass inspection. Any failed inspections in the past year have been re-inspected and any fail items have been addressed with the landlord. The inspectors will receive on-going training from the Executive Director to ensure compliance with the housing quality standards.
Show full finding ▾Hide full finding ▴Audit Finding 2020-003 ? Housing Quality Standards Criteria or Specific Requirement: According to the compliance requirements (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323), the HRA or owner of the property must provide housing that is decent, safe and sanitary. Condition: Housing quality standards require the HRA to inspect all units and make any necessary corrections within 24 hours or 30 days, depending on the reason of a failed inspection. We noted documentation available showed that all inspections passed during fiscal years 2019 and 2020, however, per discussions with administration and maintenance staff, there should have been some inspections that failed, based on their knowledge of some of the housing conditions. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures. Context: This finding impacts HRA's compliance with the housing quality standards. Questioned Costs: None. Effect or Potential Effect: The lack of proper inspections could result in property being unsafe or unsanitary. Cause: This is a repeat finding from last year as the new administration did not have time to correct the finding in fiscal year 2020. The HRA appears to not be appropriately inspecting properties. Recommendation: We recommend the HRA ensure qualified individuals are completing inspections so the HRA can be in compliance with housing quality standards. Management's Response: Since the audit, the HRA is conducting HQS inspections yearly to ensure that they are in compliance with HQS standards. The Executive Director is following up to ensure that the fail items are re-inspected to ensure they pass inspection. Any failed inspections in the past year have been re-inspected and any fail items have been addressed with the landlord. The inspectors will receive on-going training from the Executive Director to ensure compliance with the housing quality standards.
2020-003 ? Housing Quality Standards CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: Since the audit, the HRA is conducting HQS inspections yearly to ensure that they are in compliance with HQS standards. The Executive Director is following up to ensure that the fail items are re-inspected to ensure they pass inspection. Any failed inspections in the past year have been re-inspected and any fail items have been addressed with the landlord. The inspectors will receive on-going training from the Executive Director to ensure compliance with the housing quality standards. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2021. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
2019-006
During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA's compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA ensure design and implement internal controls to ensure compliance with procurement compliance requirements. Management's Response: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented.
Show full finding ▾Hide full finding ▴Audit Finding 2020-004 ? Procurement Requirements Criteria or Specific Requirement: According to compliance requirements, HRA procurements under federal awards must be made in compliance with applicable federal regulations and other procurement requirements specific to an award or subaward. Condition: During testing, we noted supporting documentation was not available that showed that procurements were made in accordance with compliance requirements. Vendors appeared to be selected without the HRA obtaining more than one quote or bid. Context: This finding impacts HRA's compliance with the procurement requirements. Questioned Costs: None. Effect or Potential Effect: The lack of proper quotes or bids is not in accordance with compliance requirements. Cause: The HRA appears to not be appropriately securing procurements. Recommendation: We recommend the HRA ensure design and implement internal controls to ensure compliance with procurement compliance requirements. Management's Response: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented.
2020-004 ? Procurement Requirements CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: The HRA will ensure internal controls over compliance with procurement compliance requirements are designed and implemented. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2021. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
During the year ended March 31, 2019, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees? hours, and processes payroll. There is also no documented review of the payroll registers or contracts with approved pay rates.? The bank reconciliation is completed by the contracted fee accountant, however, there is no documented review of the bank reconciliation. ? Monthly financial reports were not provided to the board in a timely manner to assist in their oversight of the financial activity of the HRA. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures.
Show full finding ▾Hide full finding ▴Audit Finding 2019-001 ? Lack of Segregation of Accounting Duties Criteria or Specific Requirement: Internal control that supports the HRA's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. Condition: During the year ended March 31, 2019, the HRA had a lack of segregation of accounting duties due to a limited number of office employees. This condition increases the risk that errors could occur which would not be prevented or detected and corrected, on a timely basis. Adequate segregation exists when the following components of a transaction are separate: authorization, custody of the related asset, recording, and reconciliation. This lack of segregation can be demonstrated in the following areas, which is not intended to be an all-inclusive list: ? The bookkeeper has access to checks, is an authorized check signer, receives the bank statements, mails checks, and processes payments ? The bookkeeper has control over payroll checks, sets up employee records, inputs employees? hours, and processes payroll. There is also no documented review of the payroll registers or contracts with approved pay rates.? The bank reconciliation is completed by the contracted fee accountant, however, there is no documented review of the bank reconciliation. ? Monthly financial reports were not provided to the board in a timely manner to assist in their oversight of the financial activity of the HRA. Management is aware of this condition and has taken certain steps to compensate for the lack of segregation. However, due to the number of staff needed to properly segregate all of the accounting duties, the cost of obtaining desirable segregation of accounting duties can often exceed benefits which could be derived. Because of this reason, management has determined a complete segregation of accounting duties is impractical to correct. Context: This finding impacts the internal control for all significant accounting functions. Questioned Costs: None. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the HRA's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements. Cause: This is a repeat finding from last year. There are a limited number of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical. Management's Response: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures.
2019-001 - Lack of Segregation of Accounting Duties CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: Management acknowledges the lack of proper segregation of duties and has implemented processes to improve the segregation of duties including assuring there are two signers on each check neither of which are the issuer of the checks, numerical cash receipts are prepared for each cash receipt, payroll registers are reviewed by the executive director and financial reports are prepared for the board (including a detailed check register and quarterly budget to actual reports). The HRA is currently reviewing all internal control procedures. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2020. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
2018-005
Housing quality standards require the HRA to inspect all units and make any necessary corrections within 24 hours or 30 days, depending on the reason of a failed inspection. We noted documentation available showed that all inspections passed during fiscal year 2019, however, per discussions with administration and maintenance staff, there should have been some inspections that failed, based on their knowledge of some of the housing conditions. Context: This finding impacts HRA?s compliance with the housing quality standards. Questioned Costs: None. Effect or Potential Effect: The lack of proper inspections could result in property being unsafe or unsanitary. Cause: The HRA appears to not be appropriately inspecting properties. Recommendation: We recommend the HRA ensure qualified individuals are completing inspections so the HRA can be in compliance with housing quality standards. Management's Response: Since the audit, the HRA is conducting HQS inspections yearly to ensure that they are in compliance with HQS standards. The Executive Director is following up to ensure that the fail items are reinspected to ensure they pass inspection. Any failed inspections in the past year have been reinspected and any fail items have been addressed with the landlord. The inspectors will receive ongoing training from the Executive Director to ensure compliance with the housing quality standards.
Show full finding ▾Hide full finding ▴Audit Finding 2019-006 ? Housing Quality Standards Criteria or Specific Requirement: According to the compliance requirements (24 CFR sections 880.612, 881.601, 882.516, 882.808(n), 883.701, 884.217, 886.123, and 886.323), the HRA or owner of the property must provide housing that is decent, safe and sanitary. Condition: Housing quality standards require the HRA to inspect all units and make any necessary corrections within 24 hours or 30 days, depending on the reason of a failed inspection. We noted documentation available showed that all inspections passed during fiscal year 2019, however, per discussions with administration and maintenance staff, there should have been some inspections that failed, based on their knowledge of some of the housing conditions. Context: This finding impacts HRA?s compliance with the housing quality standards. Questioned Costs: None. Effect or Potential Effect: The lack of proper inspections could result in property being unsafe or unsanitary. Cause: The HRA appears to not be appropriately inspecting properties. Recommendation: We recommend the HRA ensure qualified individuals are completing inspections so the HRA can be in compliance with housing quality standards. Management's Response: Since the audit, the HRA is conducting HQS inspections yearly to ensure that they are in compliance with HQS standards. The Executive Director is following up to ensure that the fail items are reinspected to ensure they pass inspection. Any failed inspections in the past year have been reinspected and any fail items have been addressed with the landlord. The inspectors will receive ongoing training from the Executive Director to ensure compliance with the housing quality standards.
2019-006 ? Housing Quality Standards CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: Since the audit, the HRA is conducting HQS inspections yearly to ensure that they are in compliance with HQS standards. The Executive Director is following up to ensure that the fail items are reinspected to ensure they pass inspection. Any failed inspections in the past year have been reinspected and any fail items have been addressed with the landlord. The inspectors will receive ongoing training from the Executive Director to ensure compliance with the housing quality standards. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2020. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
During our testing of waitlist applicants, we noted there was limited documentation available supporting the HRA?s process for selecting applicants to ensure they were following their written policy. Context: This finding impacts HRA?s compliance with waitlist applicants. Questioned Costs: None. Effect or Potential Effect: The lack of proper procedures in place and maintaining supporting documentation could result in waitlist applicants being improperly issued or denied a voucher. Cause: The HRA did not keep appropriate documentation of their waitlist procedures. Recommendation: We recommend the HRA ensure their waitlist policy and procedures are updated to match actual procedures and we also recommend the HRA maintain all documentation related to the waitlist selection process. Management's Response: The new Executive Director has implemented procedures to ensure that the applicants are pulled from the waiting list correctly and preferences are verified. The new Executive Director will also be following the HUD records retention schedule regarding the destruction of records.
Show full finding ▾Hide full finding ▴Audit Finding 2019-007 ? Section 8 Waitlist Documentation Criteria or Specific Requirement: According to the compliance requirements, the HRA must maintain a waitlist and have a written policy to follow for the selection of applicants from the waiting list. Condition: During our testing of waitlist applicants, we noted there was limited documentation available supporting the HRA?s process for selecting applicants to ensure they were following their written policy. Context: This finding impacts HRA?s compliance with waitlist applicants. Questioned Costs: None. Effect or Potential Effect: The lack of proper procedures in place and maintaining supporting documentation could result in waitlist applicants being improperly issued or denied a voucher. Cause: The HRA did not keep appropriate documentation of their waitlist procedures. Recommendation: We recommend the HRA ensure their waitlist policy and procedures are updated to match actual procedures and we also recommend the HRA maintain all documentation related to the waitlist selection process. Management's Response: The new Executive Director has implemented procedures to ensure that the applicants are pulled from the waiting list correctly and preferences are verified. The new Executive Director will also be following the HUD records retention schedule regarding the destruction of records.
2019-007 ? Section 8 Waitlist Documentation CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: The new Executive Director has implemented procedures to ensure that the applicants are pulled from the waiting list correctly and preferences are verified. The new Executive Director will also be following the HUD records retention schedule regarding the destruction of records. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2020. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
During our testing of tenant files, we noted the rent reasonableness calculations were not completed, the tenant files did not have signed leases, and the utility allowances were calculated incorrectly in some instances. Context: This finding impacts HRA?s compliance with their tenants. Questioned Costs: None. Effect or Potential Effect: The HRA?s tenant files are incomplete and the lack of proper procedures in place and maintaining supporting documentation could result tenant rent amounts being incorrect. Cause: The HRA did not complete the rent reasonableness calculations, did not have a process in place to ensure the utility allowances were calculated correctly, and did not keep proper documentation in the tenant files. Recommendation: We recommend the HRA ensure they complete rent reasonableness calculations, ensure the standard utility allowances are used, ensure there is a review process in place related to tenant files, and ensure copies of signed leases and other documentation are kept in the tenant files. Management's Response: The new Executive Director has completed a landlord rental survey and is implementing the rent reasonableness system in the software and training staff. The files are being reviewed to ensure that the correct utility allowance, payment standard and rent calculation were done properly.
Show full finding ▾Hide full finding ▴Audit Finding 2019-008 ? Section 8 Eligibility Documentation Criteria or Specific Requirement: According to the compliance requirements, the HRA must complete a rent reasonableness calculation for tenants, have signed leases, and appropriately include utility allowances in the calculations for rent. Condition: During our testing of tenant files, we noted the rent reasonableness calculations were not completed, the tenant files did not have signed leases, and the utility allowances were calculated incorrectly in some instances. Context: This finding impacts HRA?s compliance with their tenants. Questioned Costs: None. Effect or Potential Effect: The HRA?s tenant files are incomplete and the lack of proper procedures in place and maintaining supporting documentation could result tenant rent amounts being incorrect. Cause: The HRA did not complete the rent reasonableness calculations, did not have a process in place to ensure the utility allowances were calculated correctly, and did not keep proper documentation in the tenant files. Recommendation: We recommend the HRA ensure they complete rent reasonableness calculations, ensure the standard utility allowances are used, ensure there is a review process in place related to tenant files, and ensure copies of signed leases and other documentation are kept in the tenant files. Management's Response: The new Executive Director has completed a landlord rental survey and is implementing the rent reasonableness system in the software and training staff. The files are being reviewed to ensure that the correct utility allowance, payment standard and rent calculation were done properly.
2019-008 ? Section 8 Eligibility Documentation CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: The new Executive Director has completed a landlord rental survey and is implementing the rent reasonableness system in the software and training staff. The files are being reviewed to ensure that the correct utility allowance, payment standard and rent calculation were done properly. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2020. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
During our testing of disbursements, we noted portions of vendor payments were allocated to the Section 8 program and there was no documentation supporting the amount that was allocated. We also noted employee salaries are allocated based of a set percentage and there are no procedures in place to ensure those employees are working that portion of their time in the applicable federal program. Context: This finding impacts HRA?s expense allocation to federal programs. Questioned Costs: None. Effect or Potential Effect: The HRA could inappropriately allocate expenses to a federal program the internal control system would not identify. Cause: The HRA did not maintain supporting documentation related to the allocation of expenses and did not complete a reconciliation of time spent in the federal program in comparison to related time allocated to the program. Recommendation: We recommend the HRA ensure they maintain documentation related to the allocation of expenses to federal programs and also complete reconciliations to ensure employee time allocated to federal programs reconciles to actual time worked on the federal programs. Management's Response: The new Executive Director will be conducting a time study to ensure staff time is allocated correctly to each program.
Show full finding ▾Hide full finding ▴Audit Finding 2019-009 ? Section 8 Expense Allocations Criteria or Specific Requirement: The HRA should maintain documentation related to the allocation of expenses to each federal program. Condition: During our testing of disbursements, we noted portions of vendor payments were allocated to the Section 8 program and there was no documentation supporting the amount that was allocated. We also noted employee salaries are allocated based of a set percentage and there are no procedures in place to ensure those employees are working that portion of their time in the applicable federal program. Context: This finding impacts HRA?s expense allocation to federal programs. Questioned Costs: None. Effect or Potential Effect: The HRA could inappropriately allocate expenses to a federal program the internal control system would not identify. Cause: The HRA did not maintain supporting documentation related to the allocation of expenses and did not complete a reconciliation of time spent in the federal program in comparison to related time allocated to the program. Recommendation: We recommend the HRA ensure they maintain documentation related to the allocation of expenses to federal programs and also complete reconciliations to ensure employee time allocated to federal programs reconciles to actual time worked on the federal programs. Management's Response: The new Executive Director will be conducting a time study to ensure staff time is allocated correctly to each program.
2019-009 ? Section 8 Expense Allocations CORRECTIVE ACTION PLAN (CAP): 1. Explanation of disagreements with Audit Finding: There is no disagreement with the audit finding 2. Actions Planned in Response to Finding: The new Executive Director will be conducting a time study to ensure staff time is allocated correctly to each program. 3. Official Responsible for Ensuring CAP: Jeanne Leick, Executive Director, is the official responsible for ensuring corrective action of the finding. 4. Planned Completion Date for CAP: The planned completion date is March 31, 2020. 5. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan.
FAC accepted this audit on April 10, 2019 — management decision was due October 10, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
FAC accepted this audit on November 7, 2017 — management decision was due May 7, 2018.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on September 11, 2016 — management decision was due March 11, 2017.
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