Prescott Housing AuthorityLocal Government

GSA_MIGRATION

2020-001

GSA_MIGRATION

2020-002

GSA_MIGRATION

PRESCOTT HOUSING AUTHORITY P.O. Box 119 Prescott, Arkansas 71857-019 (870)887-3718, Fax: (870)887-6374 e-mail: libbysamone@yahoo.com Corrective Action Plan June 30, 2022 U.S. Department of Housing & Urban Development: The Housing Authority of the City of Prescott respectfully submits the following corrective action plan for the year ended March 31, 2021. Name and address of independent public accounting firm: Urlaub & Co., PLLC P.O. Box 2663 Ada, OK 74821 Audit Period: March 31, 2021 The findings from the March 31, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings-Financial Statement Audit 2021-001 Lack of Segregation of Duties Recommendation: Although the Housing Authority does not have enough resources to completely address this issue; steps can be taken to reduce the risk. Steps that can be taken are to have the board of directors become a more active component of the internal control system and formalize their internal control procedures. From a practical point, a cost/benefit analysis must be performed to determine if the benefit arrived is worth the potential additional cost incurred. In many cases, the cost will be too high to fully implement the needed controls. Action Taken: We take internal control procedures very seriously. However, with limited resources, many aspects of segregating duties are impossible. We will continue to review our procedures in order to establish a system that is effective and efficient. Anticipated Date of Resolution: This finding will be an ongoing finding due to size of the agency. 2021-002 FSS Escrow Balances Recommendation: It is recommended that the Housing Authority reconcile the account balances including interest income. The FSS escrow bank account should be adjusted to the actual reconciled balance. The total of the individual balances should be reconciled to the bank account on a monthly basis. Action Taken: We understand that the balances must be reconciled to the bank account. We are currently implementing a system that will utilize a spreadsheet for tracking purposes. The bank account balance will be adjusted before the end of the next fiscal year. Anticipated Date of Resolution: This finding will be corrected as of July 31, 2022. 2021-003 Capital Fund Program Advances Recommendation: It is recommended that management review its procedures related to the drawing of CFP funds. Invoices documenting services performed must match the amounts drawn down to prevent any overage of funds received. Action Taken: We understand the need to draw funds only upon the determination that a payment for service is provided is imminent and will revise our procedures. Anticipated Date of Resolution: This finding will be corrected for the next fiscal year?s audit. Findings ? Major Federal Award Programs 2021-004 Improper Employee Bonus Payments Recommendation: It is recommended that management review its procedures and understanding of cost eligibility. Bonus payments to employees are not permitted per OMB requirements. Action Taken: We understand the requirement that bonus payments are not permitted. The payments were made to aid the employees during the crisis while working with the public. The amounts were approved by the Board of Commissioners. Anticipated Date of Resolution: This finding will not be repeated in the next fiscal year?s audit. If the U.S. Department of Housing & Urban Development has questions regarding this plan, please call Elaine King at (870)887-3718. Sincerely yours, Elaine King Executive Director