Kearney Housing Agency

EIN: 476050016

UEI: YJUMYSKGWLW8

Data as of August 25, 2026

Kearney Housing Agency10 audit years8 findings2 repeat
10
Audit Years
8
Total Findings
2
Repeat Findings

FY 2025-03-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on December 23, 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 23, 2026 (63 days ago).

What is a management decision? →
2025-005
Reporting
MATERIAL WEAKNESS

During our review of the Voucher Management System (VMS) for fiscal year 2025, we noted the following information reported within the VMS system did not agree with amounts recorded in the general ledger for both the Housing Choice Voucher program (CFDA 14.871) and the Mainstream Voucher program (CFDA 14.879): • Housing Choice Voucher (14.871) o Net restricted position on VMS was overstated by $21,210. o Unrestricted net position on VMS was understated by $12,016. o Housing assistance payments in VMS were understated by $2,598. • Mainstream Voucher (14.879) o Net restricted position on VMS was understated by $139. o Unrestricted net position on VMS was overstated by $10,242. Cause: The Agency did not have a system in place to accurately reconcile the information used to prepare the information used for the VMS submissions to the underlying accounting records. Effect: Failure to reconcile VMS data to underlying financial records can result in: • Inaccurate reporting to HUD, which impairs HUD’s oversight of program funding and compliance. • Potential misallocation of federal funds and unsupported program balances in your audited financial statements. Recommendation: We recommend that the Housing Agency develop and formalize a written reconciliation procedure that aligns VMS balances with the general ledger at least monthly, documenting all adjustments. Further, the Housing Agency should implement review controls whereby a staff member independent of the VMS data entry process validates the net restricted and unrestricted positions before submission. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.

Show full finding ▾
Full finding narrative

Finding 2025-005: Voucher Management System Reporting Housing Choice Voucher (14.871) and Mainstream Voucher (14.879) Material Weakness/Noncompliance Criteria: The Agency is required to transmit monthly information in the Voucher Management System that is supported by the Agency’s underlying leasing and accounting records. Condition: During our review of the Voucher Management System (VMS) for fiscal year 2025, we noted the following information reported within the VMS system did not agree with amounts recorded in the general ledger for both the Housing Choice Voucher program (CFDA 14.871) and the Mainstream Voucher program (CFDA 14.879): • Housing Choice Voucher (14.871) o Net restricted position on VMS was overstated by $21,210. o Unrestricted net position on VMS was understated by $12,016. o Housing assistance payments in VMS were understated by $2,598. • Mainstream Voucher (14.879) o Net restricted position on VMS was understated by $139. o Unrestricted net position on VMS was overstated by $10,242. Cause: The Agency did not have a system in place to accurately reconcile the information used to prepare the information used for the VMS submissions to the underlying accounting records. Effect: Failure to reconcile VMS data to underlying financial records can result in: • Inaccurate reporting to HUD, which impairs HUD’s oversight of program funding and compliance. • Potential misallocation of federal funds and unsupported program balances in your audited financial statements. Recommendation: We recommend that the Housing Agency develop and formalize a written reconciliation procedure that aligns VMS balances with the general ledger at least monthly, documenting all adjustments. Further, the Housing Agency should implement review controls whereby a staff member independent of the VMS data entry process validates the net restricted and unrestricted positions before submission. View of the Responsible Officials of the Auditee: The auditee’s management agrees with the finding.

Corrective Action Plan

Management is in contact with the software company to resolve discrepancies between the general ledger and the software generated VMS report

About Reporting →
2025-006
Special Tests & Provisions
MATERIAL WEAKNESSREPEAT

The Agency did have depository agreements with its banks but they were not the most recent version of the form. Further, the Agency’s Mainstream Voucher bank account was not listed on the depository agreement the Agency did have. We further noted the Agency was not monitoring the collateral pledged to cover the deposits and did not have information to support the pledges as of March 31, 2025. Cause: The Agency was not monitoring to ensure it had the most recent version of the form and to ensure all accounts were included and did not take action to correct the prior year finding. Effect or Potential Effect: The Agency was in noncompliance with HUD’s requirement to have proper depository agreements. Recommendation: The Agency should contact its financial institutions and review the depository agreement and follow the terms which includes proper collateralization. The Agency should monitor to ensure the securities pledged are adequate to cover the Agency’s deposits at the bank. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Show full finding ▾
Full finding narrative

Finding 2025-006: HUD Depository Agreements Housing Choice Voucher Cluster, 14.871 and 14.879 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2024-002 Criteria: The Agency is required to enter into depository agreements with its financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. That agreement states: Any portion of HA Funds not insured by a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable U.S. Government or Agency securities prescribed by HUD in a notice. Collateralization is required on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with applicable law or Federal regulations. The HA shall have possession of the securities (or the HA will take possession of the securities) or an independent custodian (or an independent third party) holds the securities on behalf of the HA as a bailee (evidenced by safe keeping receipt and a written bailment for hire contract) and will be maintained for the full term of deposit. Condition: The Agency did have depository agreements with its banks but they were not the most recent version of the form. Further, the Agency’s Mainstream Voucher bank account was not listed on the depository agreement the Agency did have. We further noted the Agency was not monitoring the collateral pledged to cover the deposits and did not have information to support the pledges as of March 31, 2025. Cause: The Agency was not monitoring to ensure it had the most recent version of the form and to ensure all accounts were included and did not take action to correct the prior year finding. Effect or Potential Effect: The Agency was in noncompliance with HUD’s requirement to have proper depository agreements. Recommendation: The Agency should contact its financial institutions and review the depository agreement and follow the terms which includes proper collateralization. The Agency should monitor to ensure the securities pledged are adequate to cover the Agency’s deposits at the bank. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Corrective Action Plan

New depository agreements have been executed between the Housing Agency and the banks. Signature from HUD is pending.

Prior Finding References

2024-003

About Special Tests and Provisions →

FY 2024-03-31

FAC accepted this audit on December 30, 2024 — management decision was due June 30, 2025.

2024-003
Special Tests & Provisions
MATERIAL WEAKNESSREPEAT

View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Show full finding ▾
Full finding narrative

View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Corrective Action Plan

Monthly monitoring of securities pledged at all banks has been added to the Financial Supervisors monthly checklist.

Prior Finding References

2023-001

About Special Tests and Provisions →

FY 2023-03-31

FAC accepted this audit on October 17, 2023 — management decision was due April 17, 2024.

2023-001
Special Tests & Provisions
MATERIAL WEAKNESS

The Agency did have the required depository agreements with its banks but was not monitoring the type of collateral pledged by the bank for the deposits that exceeded the FDIC insurance. As a result, the bank did not pledge collateral that meets the requirements within the depository agreement. The bank does participate in the Single Bank Pooled Collateral Program administered by the Nebraska Banker’s Association for which HUD has determined does not meet the requirements of the depository agreement. Cause: The Agency was not aware the Single Bank Pooled Collateral Program did not meet the requirements of the HUD Depository Agreement. Effect or Potential Effect: The Agency was in noncompliance with HUD’s requirement to have proper depository agreements. Recommendation: The Agency should contact its financial institutions and review the depository agreement and follow the terms which includes proper collateralization. The Agency should monitor to ensure the securities pledged are adequate to cover the Agency’s deposits at the bank. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Show full finding ▾
Full finding narrative

Finding 2023-001: HUD Depository Agreements Housing Choice Voucher Cluster, 14.871 and 14.879 Material Weakness/Noncompliance – Special Tests and Provisions Criteria: The Agency is required to enter into depository agreements with its financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third-party rights to HUD. That agreement states: Any portion of HA Funds not insured by a Federal insurance organization shall be fully (100%) and continuously collateralized with specific and identifiable U.S. Government or Agency securities prescribed by HUD in a notice. Collateralization is required on a daily basis at the end of the business day. Such securities shall be pledged and set aside in accordance with applicable law or Federal regulations. The HA shall have possession of the securities (or the HA will take possession of the securities) or an independent custodian (or an independent third party) holds the securities on behalf of the HA as a bailee (evidenced by safe keeping receipt and a written bailment for hire contract) and will be maintained for the full term of deposit. Condition: The Agency did have the required depository agreements with its banks but was not monitoring the type of collateral pledged by the bank for the deposits that exceeded the FDIC insurance. As a result, the bank did not pledge collateral that meets the requirements within the depository agreement. The bank does participate in the Single Bank Pooled Collateral Program administered by the Nebraska Banker’s Association for which HUD has determined does not meet the requirements of the depository agreement. Cause: The Agency was not aware the Single Bank Pooled Collateral Program did not meet the requirements of the HUD Depository Agreement. Effect or Potential Effect: The Agency was in noncompliance with HUD’s requirement to have proper depository agreements. Recommendation: The Agency should contact its financial institutions and review the depository agreement and follow the terms which includes proper collateralization. The Agency should monitor to ensure the securities pledged are adequate to cover the Agency’s deposits at the bank. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Corrective Action Plan

I have reached out to the Nebraskaland Bank regarding alternate collateralization. If this bank cannot provide appropriate collateral, a new banking institution will be found.

About Special Tests and Provisions →
2023-002
Special Tests & Provisions
MATERIAL WEAKNESS

The Agency’s internal control documentation dictates a supervisor perform monthly internal audits of the tenant files to ensure compliance with eligibility and this review should be documented with a checklist within the tenant file and a log of the reviews be maintained. During our audit, we noted the Agency only did the supervisory reviews in the last month of the fiscal year and was not doing them monthly as in accordance with the Agency’s Standard Operating Procedures. Further, the Agency had a new staff that was responsible for calculation tenant eligibility that did not have documented supervisory reviews for his first five months of employment. Cause: The Agency’s staff indicated they were behind on reviews. Effect or Potential Effect: The Agency did not have effective controls over tenant eligibility. Recommendation: The Agency follow its internal control procedures it has established. The log should be completed by the supervisor monthly and the Executive Director should monitor to ensure its being done. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Show full finding ▾
Full finding narrative

Finding 2023-002: Tenant File Internal Controls Housing Choice Voucher Cluster, 14.871 and 14.879 Material Weakness – Eligibility Criteria: The Agency is required to establish effective controls to ensure the Agency complies with the applicable federal requirements governing eligibility. Condition: The Agency’s internal control documentation dictates a supervisor perform monthly internal audits of the tenant files to ensure compliance with eligibility and this review should be documented with a checklist within the tenant file and a log of the reviews be maintained. During our audit, we noted the Agency only did the supervisory reviews in the last month of the fiscal year and was not doing them monthly as in accordance with the Agency’s Standard Operating Procedures. Further, the Agency had a new staff that was responsible for calculation tenant eligibility that did not have documented supervisory reviews for his first five months of employment. Cause: The Agency’s staff indicated they were behind on reviews. Effect or Potential Effect: The Agency did not have effective controls over tenant eligibility. Recommendation: The Agency follow its internal control procedures it has established. The log should be completed by the supervisor monthly and the Executive Director should monitor to ensure its being done. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Corrective Action Plan

The Director has added to her monthly checklist to review quality control logs and follow up on any QC reviews that are not being conducted in a timely fashion.

About Special Tests and Provisions →

FY 2018-03-31

FAC accepted this audit on July 5, 2018 — management decision was due January 5, 2019.

2018-001
Equipment & Real Property
MATERIAL WEAKNESS

GSA_MIGRATION

Show full finding ▾
Full finding narrative

GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

About Equipment and Real Property Management →
2018-002
Procurement & Suspension/Debarment
MATERIAL WEAKNESS

GSA_MIGRATION

Show full finding ▾
Full finding narrative

GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

About Procurement and Suspension and Debarment →
2018-003
Special Tests & Provisions
MATERIAL WEAKNESS

GSA_MIGRATION

Show full finding ▾
Full finding narrative

GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

About Special Tests and Provisions →

Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.

Are you this organization?

Track your findings and corrective action plans across audit cycles.

Start tracking findings →

Do you fund this organization?

Monitor subrecipient audit findings and compliance status.

Start monitoring →

Product

Resources

Legal

Single Audit Intelligence is an independent tool powered by Federal Audit Clearinghouse data. Not affiliated with GSA, OMB, or any federal agency.

© 2026 Single Audit Intelligence. All data is public domain.