EIN: 710470515
UEI: ZNUBY596QRR5
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 11, 2022. 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 11, 2023 (1168 days ago).
What is a management decision? →Transfers of HAP, and associated administrative fees, even temporarily, to support another program (such as the USDA-RD program) or use are not allowed and could be considered a breach of the ACC. Such use may result in civil penalties or sanctions (24 CFR section 985.109). We noted an interfund payable from the USDA program to the HCV program for an amount exceeding the unrestricted cash in the USDA program by $5,688 (overdraft), indicating funds were loaned to the USDA program from the HCV program (an unallowable activity). We also noted the following deficiencies in the USDA-RD program; an underfunded tenant security deposit bank account by $4,101; tenants? security deposits for vacated tenants not timely refunded or applied to unpaid tenant charges totaling $4,801; old outstanding checks carried forward on reconciliations of all programs totaling $8,391. Additionally, there were salaries paid from the HCV Cares Act in the amount of $4,534 for incentive pay in which no withholdings or reporting occurred to federal and state taxing authorities. Further, monthly Board meetings are not being held as required by the by-laws of the Authority. There was documentation for only one meeting during the year under audit. ? Questioned costs: There were no questioned costs. ? Context: We noted numerous cash management procedures and compliance requirements that need to be corrected. ? Effect: The PHA is experiencing a shortfall of unrestricted cash available to operate the programs independently. The PHA may be subject to penalties for unremitted/unreported employment taxes. ? Cause: Weakness in internal controls over budgetary and cash management, and compliance procedures. ? Identification as a repeat finding: This is not a repeat audit finding. ? Recommendation for Corrective Action: Establish procedures for managements review and supervision over the administration of tenants? security deposits, bank reconciliations, interfund accounts, budgetary and payroll procedures. ? Views of Responsible Officials and Planned Corrective Actions: We will review vacated tenants? security deposit accounts, ensuring that they are properly refunded or applied to tenant charges, we will ensure that the security deposit bank account is properly funded, that all outstanding checks on each bank reconciliation clears within 6 months, and review our procedures over interfund accounting and budgetary practices. We will take corrective action on the unremitted payroll taxes and Board meetings. We will also provide increased supervision and training over these areas in an effort to resolve these issues. We anticipate a complete resolution of these errors by December 31, 2022.
Show full finding ▾Hide full finding ▴Section II ? Financial Statement Findings Finding 2022-001 ? Summary: Our audit revealed significant deficiencies in the administration of the USDA and HUD housing programs in accordance with program requirements, including activities allowed or unallowable. We noted an underfunded tenant security deposit account in the USDA program by $4,101; tenants security deposits for vacated tenants not timely refunded or applied to unpaid tenant charges totaling $4,801; old outstanding checks carried forward on reconciliations of both programs totaling $8,391 that need to be reviewed for disposition, an interfund payable from the USDA program to the HCV program for an amount exceeding the unrestricted cash in the USDA program by $5,688 (overdraft), indicating funds are being loaned to the USDA program from the HCV program (an unallowable activity). Additionally, there were payments to employees not subjected to employment taxes, and a lack of regular Board meetings as required in the Agencies by-laws. A more detailed explanation of this finding is contained in the following section. See below. Section III ? Federal Award Findings and Questioned Costs Finding 2022-001 ? Information on the federal program: CFDA 14.871; U.S Department of Housing and Urban Development; Section 8 Housing Choice Vouchers; annual contributions contract number AR-152VO; fiscal year ending March 31, 2022. ? Criteria or specific requirement (including statutory, regulatory, or other citation): Administration of the USDA and HUD housing programs in accordance with program requirements, including activities allowed or unallowable. ? Condition: Transfers of HAP, and associated administrative fees, even temporarily, to support another program (such as the USDA-RD program) or use are not allowed and could be considered a breach of the ACC. Such use may result in civil penalties or sanctions (24 CFR section 985.109). We noted an interfund payable from the USDA program to the HCV program for an amount exceeding the unrestricted cash in the USDA program by $5,688 (overdraft), indicating funds were loaned to the USDA program from the HCV program (an unallowable activity). We also noted the following deficiencies in the USDA-RD program; an underfunded tenant security deposit bank account by $4,101; tenants? security deposits for vacated tenants not timely refunded or applied to unpaid tenant charges totaling $4,801; old outstanding checks carried forward on reconciliations of all programs totaling $8,391. Additionally, there were salaries paid from the HCV Cares Act in the amount of $4,534 for incentive pay in which no withholdings or reporting occurred to federal and state taxing authorities. Further, monthly Board meetings are not being held as required by the by-laws of the Authority. There was documentation for only one meeting during the year under audit. ? Questioned costs: There were no questioned costs. ? Context: We noted numerous cash management procedures and compliance requirements that need to be corrected. ? Effect: The PHA is experiencing a shortfall of unrestricted cash available to operate the programs independently. The PHA may be subject to penalties for unremitted/unreported employment taxes. ? Cause: Weakness in internal controls over budgetary and cash management, and compliance procedures. ? Identification as a repeat finding: This is not a repeat audit finding. ? Recommendation for Corrective Action: Establish procedures for managements review and supervision over the administration of tenants? security deposits, bank reconciliations, interfund accounts, budgetary and payroll procedures. ? Views of Responsible Officials and Planned Corrective Actions: We will review vacated tenants? security deposit accounts, ensuring that they are properly refunded or applied to tenant charges, we will ensure that the security deposit bank account is properly funded, that all outstanding checks on each bank reconciliation clears within 6 months, and review our procedures over interfund accounting and budgetary practices. We will take corrective action on the unremitted payroll taxes and Board meetings. We will also provide increased supervision and training over these areas in an effort to resolve these issues. We anticipate a complete resolution of these errors by December 31, 2022.
CORRECTIVE ACTION PLAN YEAR ENDED MARCH 31, 2022 Oversight Agency: U.S. Department of Housing and Urban Development The Housing Authority of the City of Lake Village, Arkansas respectively submits the following corrective action plan for the year ended March 31, 2022. Name and address of public accounting firm: Donald E. Curtis, PLLC, Certified Public Accountant P.O. Box 1269 Beebe, AR 72012 The findings from the March 31, 2022 audit report are discussed below. The findings are numbered to correspond to the audit findings disclosed in Section II and Section III of the Schedule of Findings and Questioned Costs. Finding 2022-001 Criteria or specific requirement: Administration of the USDA and HUD housing programs independently in accordance with program requirements, including cash management. Recommendation for Corrective Action: Establish controls over cash management procedures for all programs to ensure proper management and supervision of the administration of interfund accounts payable/receivable, tenants? security deposits, bank reconciliations, and budgetary procedures. Planned Action/Action Taken: We will review vacated tenants? security deposit accounts, ensuring that they are properly refunded or applied to tenant charges, we will ensure that the security deposit bank account is properly funded, that all outstanding checks on each bank reconciliation clears within 6 months, and review our procedures over interfund accounting and budgetary practices. We will also provide increased supervision and training over these areas in an effort to resolve these issues. We anticipate a complete resolution of these errors by October 31, 2022. If the Oversight Agency has questions regarding this plan, please call Marcus Dickson, Executive Director at (870)265-3851. Sincerely, Marcus Dickson, Executive Director
FAC accepted this audit on August 18, 2017 — management decision was due February 18, 2018.
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