EIN: 586002930
UEI: K2M8DLM9VHN1
Audited by: KENDALL L. DAVIS, P.C.
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2023. 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 29, 2024 (889 days ago).
What is a management decision? →FAC accepted this audit on December 19, 2022 — management decision was due June 19, 2023.
FAC accepted this audit on December 18, 2022 — management decision was due June 18, 2023.
The audit fieldwork disclosed that no journal vouchers had been approved by a responsible individual throughout the year. 43 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-001 Journal vouchers not approved by the Authority. (Continued) Questioned Costs: None Effect: The effect of this condition is that management appears not to be reviewing the journal vouchers before entries are made on the general ledger although they are taking responsibility for fair presentation of the financial statements. Cause: The Authority did not realize that journal vouchers should be approved. Recommendation: All journal vouchers should be approved before entries are made into the general ledger. Management Response: We will immediately implement a process to ensure that all journal vouchers are approved before entries are made into the general ledger. 2020-002 Tenant security deposit bond insurance not adequate. Criteria: The insurance coverage should be adequate to cover the amount of tenant security deposits. Condition: It was disclosed that the Authority had tenant security bond coverage of $10,000 but the amount of tenant security deposits owed to tenants was $30,487. The amount uninsured was $20,487. Questioned Costs: None. Effect: The effect of this condition is that if the Authority depleted all of its cash then $20,487 would not be available to reimburse the tenants for their security deposits. Cause: The Authority did not realize that security deposit insurance coverage was inadequate. Recommendation: It is recommended that the Authority request the insurance company to increase its coverage. Management Response: We will immediately obtain additional coverage to ensure that tenant security deposits are fully insured. 44 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-003 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) Criteria: 24 CFR 905.306 (a) requires that at least 90% of a capital fund grant be obligated within two years of the date the funds are made available. Condition: The Authority did not obligate CFP-2015 funds within two years that the funds were made available by HUD. Questioned Costs: None Effect: The effect of this condition is that since the Authority requested CFP-2015 funds during 2019, HUD deobligated any CFP-2019 funds. Cause: Cash Management ? controls were not in place to ensure that funds were obligated within two years for each Capital Fund Program. Recommendation: It is recommended that the Authority establish procedures that are timely to obligate Capital Fund Program funds within two years that they become available. Since the Authority is eligible to draw funds down through BLI 1406, it should draw funds down each year. Management Response: We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely. Section III - Federal Awards: The audit fieldwork disclosed the following audit finding: Finding Number 2020-004 Unresolved amounts owed to tenants and resident council. Criteria: The Authority should only charge tenants the costs that they are responsible for. The resident participation fees are given to the Authority for the benefit of the residents through its Operating Subsidy. Condition: The audit fieldwork disclosed that the Authority owes tenants and the resident council the amount of $79,922. This amount is reported as a liability on the Authority?s financial statements. Of this amount, $60,000 is for pest control and grass cutting charged to tenants that are not the responsibility of the tenants. The amount of $19,922 is the result of the Authority not transferring the tenant portion of the resident participation fees to the Resident Council. 45 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section III - Federal Awards (Continued) 2020-004 Unresolved amounts owed to tenants and resident council. (Continued) Questioned Costs: None Effect: The effect of this condition is that the Authority is holding funds in its account that should be paid to the related tenants and Resident Council. Cause: The Authority did not realize that it could not charge tenants for pest control and grass cutting. Also, the Authority did not realize that the resident participation fees should be transferred to the Resident Council. Recommendation It is recommended that the Authority immediately process these reimbursements as only deemed appropriate. Management Response: We have already discontinued charging residents for pest control and grass cutting. We will work with HUD to discuss our Resident Council and the internal controls in place to safeguard the funds paid to them and only use the resident participation fees for their intended purpose. 2020-005 Ineligible costs related to real estate and improvements. Criteria: Under Section 9(3) of the Housing Act of 1937, the Authority is provided operating for the operations and management of public housing. Condition: A single-family dwelling was purchased using HUD funds in a previous year. In addition, repair and improvement costs were incurred which included costs spent on land improvements. The total ineligible costs owed back to HUD is $68,431. Questioned Costs: $68,431 Effect: The effect of this condition is that the ineligible costs spent could have been used for operations to provide safe, sanitary housing units to low-income residents. Cause: The Authority did not realize that they were incurring ineligible costs. Recommendation: Any purchases of real property and costs spent on real property should be made in accordance with HUD?s rules and regulations and require HUD approval. Also, the Authority should reimburse HUD for the ineligible costs or work with HUD to resolve this liability of $68,431 reflected on the Authority?s financial statements. Management Response: We will immediately implement a process to ensure that any purchases of real property are in accordance with HUD guidelines including HUD?s approval. We will also work with HUD to bring a resolution to this matter. 46 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS The prior audit report for the year ended December 31, 2019 contained the following audit findings: Finding No. 2019-001 Journal vouchers not approved by the Authority. See current audit finding 2020-001. 2019-002 Tenant security bond insurance is not adequate. See current audit finding 2020-002. 2019-003 Unresolved amounts owed to tenants and resident council. See current audit finding 2020-004. 2019-004 Capital fund program funds ? 2015 mismanaged. See current audit finding 2020-003. 2018-006 Unapproved costs related to the purchase of real estate. See current audit finding 2020-005. 47
Show full finding ▾Hide full finding ▴HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Section I - Summary of Auditor?s Results: Financial Statements Type of report issued on the financial statements: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes Significant deficiencies identified not considered to be material weaknesses? Yes Noncompliance material to the financial statements noted? No Federal Awards Internal controls over major program: Material weakness(es) identified? Yes Significant deficiencies identified not considered to be material weaknesses? Yes Type of report issued on the compliance for major program: Qualified Any audit findings disclosed that are required to be reported In accordance with 2 CFR 200.516(a)? Yes Identification of major program: C.F.D.A. 14.850 Low-Rent Housing Program Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Did the Authority qualify as a low-risk auditee? No Section II - Financial Statement Findings: The audit fieldwork disclosed the following audit findings: Finding Number 2020-001 Journal vouchers not approved by the Authority. Criteria: Journal vouchers should be approved after they are prepared and signed by the preparer and approved by a responsible individual before entries are made into the general ledger. Condition: The audit fieldwork disclosed that no journal vouchers had been approved by a responsible individual throughout the year. 43 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-001 Journal vouchers not approved by the Authority. (Continued) Questioned Costs: None Effect: The effect of this condition is that management appears not to be reviewing the journal vouchers before entries are made on the general ledger although they are taking responsibility for fair presentation of the financial statements. Cause: The Authority did not realize that journal vouchers should be approved. Recommendation: All journal vouchers should be approved before entries are made into the general ledger. Management Response: We will immediately implement a process to ensure that all journal vouchers are approved before entries are made into the general ledger. 2020-002 Tenant security deposit bond insurance not adequate. Criteria: The insurance coverage should be adequate to cover the amount of tenant security deposits. Condition: It was disclosed that the Authority had tenant security bond coverage of $10,000 but the amount of tenant security deposits owed to tenants was $30,487. The amount uninsured was $20,487. Questioned Costs: None. Effect: The effect of this condition is that if the Authority depleted all of its cash then $20,487 would not be available to reimburse the tenants for their security deposits. Cause: The Authority did not realize that security deposit insurance coverage was inadequate. Recommendation: It is recommended that the Authority request the insurance company to increase its coverage. Management Response: We will immediately obtain additional coverage to ensure that tenant security deposits are fully insured. 44 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-003 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) Criteria: 24 CFR 905.306 (a) requires that at least 90% of a capital fund grant be obligated within two years of the date the funds are made available. Condition: The Authority did not obligate CFP-2015 funds within two years that the funds were made available by HUD. Questioned Costs: None Effect: The effect of this condition is that since the Authority requested CFP-2015 funds during 2019, HUD deobligated any CFP-2019 funds. Cause: Cash Management ? controls were not in place to ensure that funds were obligated within two years for each Capital Fund Program. Recommendation: It is recommended that the Authority establish procedures that are timely to obligate Capital Fund Program funds within two years that they become available. Since the Authority is eligible to draw funds down through BLI 1406, it should draw funds down each year. Management Response: We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely. Section III - Federal Awards: The audit fieldwork disclosed the following audit finding: Finding Number 2020-004 Unresolved amounts owed to tenants and resident council. Criteria: The Authority should only charge tenants the costs that they are responsible for. The resident participation fees are given to the Authority for the benefit of the residents through its Operating Subsidy. Condition: The audit fieldwork disclosed that the Authority owes tenants and the resident council the amount of $79,922. This amount is reported as a liability on the Authority?s financial statements. Of this amount, $60,000 is for pest control and grass cutting charged to tenants that are not the responsibility of the tenants. The amount of $19,922 is the result of the Authority not transferring the tenant portion of the resident participation fees to the Resident Council. 45 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section III - Federal Awards (Continued) 2020-004 Unresolved amounts owed to tenants and resident council. (Continued) Questioned Costs: None Effect: The effect of this condition is that the Authority is holding funds in its account that should be paid to the related tenants and Resident Council. Cause: The Authority did not realize that it could not charge tenants for pest control and grass cutting. Also, the Authority did not realize that the resident participation fees should be transferred to the Resident Council. Recommendation It is recommended that the Authority immediately process these reimbursements as only deemed appropriate. Management Response: We have already discontinued charging residents for pest control and grass cutting. We will work with HUD to discuss our Resident Council and the internal controls in place to safeguard the funds paid to them and only use the resident participation fees for their intended purpose. 2020-005 Ineligible costs related to real estate and improvements. Criteria: Under Section 9(3) of the Housing Act of 1937, the Authority is provided operating for the operations and management of public housing. Condition: A single-family dwelling was purchased using HUD funds in a previous year. In addition, repair and improvement costs were incurred which included costs spent on land improvements. The total ineligible costs owed back to HUD is $68,431. Questioned Costs: $68,431 Effect: The effect of this condition is that the ineligible costs spent could have been used for operations to provide safe, sanitary housing units to low-income residents. Cause: The Authority did not realize that they were incurring ineligible costs. Recommendation: Any purchases of real property and costs spent on real property should be made in accordance with HUD?s rules and regulations and require HUD approval. Also, the Authority should reimburse HUD for the ineligible costs or work with HUD to resolve this liability of $68,431 reflected on the Authority?s financial statements. Management Response: We will immediately implement a process to ensure that any purchases of real property are in accordance with HUD guidelines including HUD?s approval. We will also work with HUD to bring a resolution to this matter. 46 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS The prior audit report for the year ended December 31, 2019 contained the following audit findings: Finding No. 2019-001 Journal vouchers not approved by the Authority. See current audit finding 2020-001. 2019-002 Tenant security bond insurance is not adequate. See current audit finding 2020-002. 2019-003 Unresolved amounts owed to tenants and resident council. See current audit finding 2020-004. 2019-004 Capital fund program funds ? 2015 mismanaged. See current audit finding 2020-003. 2018-006 Unapproved costs related to the purchase of real estate. See current audit finding 2020-005. 47
HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 CORRECTIVE ACTION PLAN The following is the corrective action planned by the Authority concerning the current audit findings: Finding No. 2020-001 Journal vouchers not approved by the Authority. We will immediately implement a process to ensure that all journal vouchers are approved before entries are made into the general ledger. We are working on a policy. Date of completion: December 31, 2022. 2020-002 Tenant security deposit bond insurance not adequate. We will immediately obtain additional coverage to ensure that tenant security deposits are fully insured. We also opened a separate bank account for tenant security deposits. We will ensure that insurance coverage is adequate. Date of completion: December 31, 2022. 2019-003 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely. Date of completion: December 31, 2022. 2020-004 Unresolved amounts owed to tenants and resident council. We have already discontinued charging residents for pest control and grass cutting. We will work with HUD to discuss our Resident Council and the internal controls in place to safeguard on funds paid to them and only use the resident participation fees for their intended purpose by the Resident Council. At present, we are having difficulty locating the former tenants that are owed the money. We will continue to try to find them. Date of completion: December 31, 2022. 2018-005 Ineligible costs related to real estate and improvements. We will immediately implement a process to ensure that any purchases of real property are in accordance with HUD guidelines including HUD?s approval. We are currently attempting to sell the property to pay back the funds. In addition, the Board has signed a certification that they will not spend any more Public Housing funds on any non-ACC property. Date of completion: December 31, 2022. Contact Information: Ms. Laura Williamson, Interim Executive Director. Telephone: (706) 595-4878
2019-003
The audit fieldwork disclosed that no journal vouchers had been approved by a responsible individual throughout the year. 43 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-001 Journal vouchers not approved by the Authority. (Continued) Questioned Costs: None Effect: The effect of this condition is that management appears not to be reviewing the journal vouchers before entries are made on the general ledger although they are taking responsibility for fair presentation of the financial statements. Cause: The Authority did not realize that journal vouchers should be approved. Recommendation: All journal vouchers should be approved before entries are made into the general ledger. Management Response: We will immediately implement a process to ensure that all journal vouchers are approved before entries are made into the general ledger. 2020-002 Tenant security deposit bond insurance not adequate. Criteria: The insurance coverage should be adequate to cover the amount of tenant security deposits. Condition: It was disclosed that the Authority had tenant security bond coverage of $10,000 but the amount of tenant security deposits owed to tenants was $30,487. The amount uninsured was $20,487. Questioned Costs: None. Effect: The effect of this condition is that if the Authority depleted all of its cash then $20,487 would not be available to reimburse the tenants for their security deposits. Cause: The Authority did not realize that security deposit insurance coverage was inadequate. Recommendation: It is recommended that the Authority request the insurance company to increase its coverage. Management Response: We will immediately obtain additional coverage to ensure that tenant security deposits are fully insured. 44 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-003 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) Criteria: 24 CFR 905.306 (a) requires that at least 90% of a capital fund grant be obligated within two years of the date the funds are made available. Condition: The Authority did not obligate CFP-2015 funds within two years that the funds were made available by HUD. Questioned Costs: None Effect: The effect of this condition is that since the Authority requested CFP-2015 funds during 2019, HUD deobligated any CFP-2019 funds. Cause: Cash Management ? controls were not in place to ensure that funds were obligated within two years for each Capital Fund Program. Recommendation: It is recommended that the Authority establish procedures that are timely to obligate Capital Fund Program funds within two years that they become available. Since the Authority is eligible to draw funds down through BLI 1406, it should draw funds down each year. Management Response: We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely. Section III - Federal Awards: The audit fieldwork disclosed the following audit finding: Finding Number 2020-004 Unresolved amounts owed to tenants and resident council. Criteria: The Authority should only charge tenants the costs that they are responsible for. The resident participation fees are given to the Authority for the benefit of the residents through its Operating Subsidy. Condition: The audit fieldwork disclosed that the Authority owes tenants and the resident council the amount of $79,922. This amount is reported as a liability on the Authority?s financial statements. Of this amount, $60,000 is for pest control and grass cutting charged to tenants that are not the responsibility of the tenants. The amount of $19,922 is the result of the Authority not transferring the tenant portion of the resident participation fees to the Resident Council. 45 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section III - Federal Awards (Continued) 2020-004 Unresolved amounts owed to tenants and resident council. (Continued) Questioned Costs: None Effect: The effect of this condition is that the Authority is holding funds in its account that should be paid to the related tenants and Resident Council. Cause: The Authority did not realize that it could not charge tenants for pest control and grass cutting. Also, the Authority did not realize that the resident participation fees should be transferred to the Resident Council. Recommendation It is recommended that the Authority immediately process these reimbursements as only deemed appropriate. Management Response: We have already discontinued charging residents for pest control and grass cutting. We will work with HUD to discuss our Resident Council and the internal controls in place to safeguard the funds paid to them and only use the resident participation fees for their intended purpose. 2020-005 Ineligible costs related to real estate and improvements. Criteria: Under Section 9(3) of the Housing Act of 1937, the Authority is provided operating for the operations and management of public housing. Condition: A single-family dwelling was purchased using HUD funds in a previous year. In addition, repair and improvement costs were incurred which included costs spent on land improvements. The total ineligible costs owed back to HUD is $68,431. Questioned Costs: $68,431 Effect: The effect of this condition is that the ineligible costs spent could have been used for operations to provide safe, sanitary housing units to low-income residents. Cause: The Authority did not realize that they were incurring ineligible costs. Recommendation: Any purchases of real property and costs spent on real property should be made in accordance with HUD?s rules and regulations and require HUD approval. Also, the Authority should reimburse HUD for the ineligible costs or work with HUD to resolve this liability of $68,431 reflected on the Authority?s financial statements. Management Response: We will immediately implement a process to ensure that any purchases of real property are in accordance with HUD guidelines including HUD?s approval. We will also work with HUD to bring a resolution to this matter. 46 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS The prior audit report for the year ended December 31, 2019 contained the following audit findings: Finding No. 2019-001 Journal vouchers not approved by the Authority. See current audit finding 2020-001. 2019-002 Tenant security bond insurance is not adequate. See current audit finding 2020-002. 2019-003 Unresolved amounts owed to tenants and resident council. See current audit finding 2020-004. 2019-004 Capital fund program funds ? 2015 mismanaged. See current audit finding 2020-003. 2018-006 Unapproved costs related to the purchase of real estate. See current audit finding 2020-005. 47
Show full finding ▾Hide full finding ▴HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Section I - Summary of Auditor?s Results: Financial Statements Type of report issued on the financial statements: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes Significant deficiencies identified not considered to be material weaknesses? Yes Noncompliance material to the financial statements noted? No Federal Awards Internal controls over major program: Material weakness(es) identified? Yes Significant deficiencies identified not considered to be material weaknesses? Yes Type of report issued on the compliance for major program: Qualified Any audit findings disclosed that are required to be reported In accordance with 2 CFR 200.516(a)? Yes Identification of major program: C.F.D.A. 14.850 Low-Rent Housing Program Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Did the Authority qualify as a low-risk auditee? No Section II - Financial Statement Findings: The audit fieldwork disclosed the following audit findings: Finding Number 2020-001 Journal vouchers not approved by the Authority. Criteria: Journal vouchers should be approved after they are prepared and signed by the preparer and approved by a responsible individual before entries are made into the general ledger. Condition: The audit fieldwork disclosed that no journal vouchers had been approved by a responsible individual throughout the year. 43 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-001 Journal vouchers not approved by the Authority. (Continued) Questioned Costs: None Effect: The effect of this condition is that management appears not to be reviewing the journal vouchers before entries are made on the general ledger although they are taking responsibility for fair presentation of the financial statements. Cause: The Authority did not realize that journal vouchers should be approved. Recommendation: All journal vouchers should be approved before entries are made into the general ledger. Management Response: We will immediately implement a process to ensure that all journal vouchers are approved before entries are made into the general ledger. 2020-002 Tenant security deposit bond insurance not adequate. Criteria: The insurance coverage should be adequate to cover the amount of tenant security deposits. Condition: It was disclosed that the Authority had tenant security bond coverage of $10,000 but the amount of tenant security deposits owed to tenants was $30,487. The amount uninsured was $20,487. Questioned Costs: None. Effect: The effect of this condition is that if the Authority depleted all of its cash then $20,487 would not be available to reimburse the tenants for their security deposits. Cause: The Authority did not realize that security deposit insurance coverage was inadequate. Recommendation: It is recommended that the Authority request the insurance company to increase its coverage. Management Response: We will immediately obtain additional coverage to ensure that tenant security deposits are fully insured. 44 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section II - Financial Statement Findings (Continued) 2020-003 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) Criteria: 24 CFR 905.306 (a) requires that at least 90% of a capital fund grant be obligated within two years of the date the funds are made available. Condition: The Authority did not obligate CFP-2015 funds within two years that the funds were made available by HUD. Questioned Costs: None Effect: The effect of this condition is that since the Authority requested CFP-2015 funds during 2019, HUD deobligated any CFP-2019 funds. Cause: Cash Management ? controls were not in place to ensure that funds were obligated within two years for each Capital Fund Program. Recommendation: It is recommended that the Authority establish procedures that are timely to obligate Capital Fund Program funds within two years that they become available. Since the Authority is eligible to draw funds down through BLI 1406, it should draw funds down each year. Management Response: We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely. Section III - Federal Awards: The audit fieldwork disclosed the following audit finding: Finding Number 2020-004 Unresolved amounts owed to tenants and resident council. Criteria: The Authority should only charge tenants the costs that they are responsible for. The resident participation fees are given to the Authority for the benefit of the residents through its Operating Subsidy. Condition: The audit fieldwork disclosed that the Authority owes tenants and the resident council the amount of $79,922. This amount is reported as a liability on the Authority?s financial statements. Of this amount, $60,000 is for pest control and grass cutting charged to tenants that are not the responsibility of the tenants. The amount of $19,922 is the result of the Authority not transferring the tenant portion of the resident participation fees to the Resident Council. 45 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) Section III - Federal Awards (Continued) 2020-004 Unresolved amounts owed to tenants and resident council. (Continued) Questioned Costs: None Effect: The effect of this condition is that the Authority is holding funds in its account that should be paid to the related tenants and Resident Council. Cause: The Authority did not realize that it could not charge tenants for pest control and grass cutting. Also, the Authority did not realize that the resident participation fees should be transferred to the Resident Council. Recommendation It is recommended that the Authority immediately process these reimbursements as only deemed appropriate. Management Response: We have already discontinued charging residents for pest control and grass cutting. We will work with HUD to discuss our Resident Council and the internal controls in place to safeguard the funds paid to them and only use the resident participation fees for their intended purpose. 2020-005 Ineligible costs related to real estate and improvements. Criteria: Under Section 9(3) of the Housing Act of 1937, the Authority is provided operating for the operations and management of public housing. Condition: A single-family dwelling was purchased using HUD funds in a previous year. In addition, repair and improvement costs were incurred which included costs spent on land improvements. The total ineligible costs owed back to HUD is $68,431. Questioned Costs: $68,431 Effect: The effect of this condition is that the ineligible costs spent could have been used for operations to provide safe, sanitary housing units to low-income residents. Cause: The Authority did not realize that they were incurring ineligible costs. Recommendation: Any purchases of real property and costs spent on real property should be made in accordance with HUD?s rules and regulations and require HUD approval. Also, the Authority should reimburse HUD for the ineligible costs or work with HUD to resolve this liability of $68,431 reflected on the Authority?s financial statements. Management Response: We will immediately implement a process to ensure that any purchases of real property are in accordance with HUD guidelines including HUD?s approval. We will also work with HUD to bring a resolution to this matter. 46 HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS The prior audit report for the year ended December 31, 2019 contained the following audit findings: Finding No. 2019-001 Journal vouchers not approved by the Authority. See current audit finding 2020-001. 2019-002 Tenant security bond insurance is not adequate. See current audit finding 2020-002. 2019-003 Unresolved amounts owed to tenants and resident council. See current audit finding 2020-004. 2019-004 Capital fund program funds ? 2015 mismanaged. See current audit finding 2020-003. 2018-006 Unapproved costs related to the purchase of real estate. See current audit finding 2020-005. 47
HOUSING AUTHORITY OF THE CITY OF THOMSON Thomson, Georgia December 31, 2020 CORRECTIVE ACTION PLAN The following is the corrective action planned by the Authority concerning the current audit findings: Finding No. 2020-001 Journal vouchers not approved by the Authority. We will immediately implement a process to ensure that all journal vouchers are approved before entries are made into the general ledger. We are working on a policy. Date of completion: December 31, 2022. 2020-002 Tenant security deposit bond insurance not adequate. We will immediately obtain additional coverage to ensure that tenant security deposits are fully insured. We also opened a separate bank account for tenant security deposits. We will ensure that insurance coverage is adequate. Date of completion: December 31, 2022. 2019-003 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely. Date of completion: December 31, 2022. 2020-004 Unresolved amounts owed to tenants and resident council. We have already discontinued charging residents for pest control and grass cutting. We will work with HUD to discuss our Resident Council and the internal controls in place to safeguard on funds paid to them and only use the resident participation fees for their intended purpose by the Resident Council. At present, we are having difficulty locating the former tenants that are owed the money. We will continue to try to find them. Date of completion: December 31, 2022. 2018-005 Ineligible costs related to real estate and improvements. We will immediately implement a process to ensure that any purchases of real property are in accordance with HUD guidelines including HUD?s approval. We are currently attempting to sell the property to pay back the funds. In addition, the Board has signed a certification that they will not spend any more Public Housing funds on any non-ACC property. Date of completion: December 31, 2022. Contact Information: Ms. Laura Williamson, Interim Executive Director. Telephone: (706) 595-4878
2019-006
FAC accepted this audit on September 29, 2023 — management decision was due March 29, 2024.
The Authority did not obligate CFP-2015 funds within two years that the funds were made available by HUD. Questioned Costs: None Effect: The effect of this condition is that since the Authority requested CFP-2015 funds during 2019, HUD deobligated any CFP-2019 funds. Cause: Cash Management ? controls were not in place to ensure that funds were obligated within two years for each Capital Fund Program. Recommendation: It is recommended that the Authority establish procedures that are timely to obligate Capital Fund Program funds within two years that they become available. Since the Authority is eligible to draw funds down through BLI 1406, it should draw funds down each year. Management Response: We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely.
Show full finding ▾Hide full finding ▴2019-004 Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) Criteria: 24 CFR 905.306 (a) requires that at least 90% of a capital fund grant be obligated within two years of the date the funds are made available. Condition: The Authority did not obligate CFP-2015 funds within two years that the funds were made available by HUD. Questioned Costs: None Effect: The effect of this condition is that since the Authority requested CFP-2015 funds during 2019, HUD deobligated any CFP-2019 funds. Cause: Cash Management ? controls were not in place to ensure that funds were obligated within two years for each Capital Fund Program. Recommendation: It is recommended that the Authority establish procedures that are timely to obligate Capital Fund Program funds within two years that they become available. Since the Authority is eligible to draw funds down through BLI 1406, it should draw funds down each year. Management Response: We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely.
Compliance requirement ? Cash Management. Capital Fund Program ? 2015 funds were not obligated and requested from HUD timely through ELOCCS. (Capital Fund Program CFDA 14.872) We will immediately establish procedures to ensure that Capital Fund Program funds are obligated and requested from HUD timely.
FAC accepted this audit on September 26, 2019 — management decision was due March 26, 2020.
GSA_MIGRATION
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