EIN: 716048839
UEI: U387TETDED43
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 30, 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 30, 2026, which was (52 days ago).
What is a management decision? →Material Misclassifications • Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions to prevent or detect misstatements of the financial statements on a timely basis. AU-C Section 265 Communication Internal Control Related Matters Identified in an Audit, identifies deficiencies in controls over the period-end financial reporting process, including controls over procedures used to enter transactions and journal entries into the general ledger and to record recurring and nonrecurring adjustments to the financial statements that was not initially identified by the entity’s internal controls even if management subsequently corrects the misstatement. • Condition: Material misclassifications in the financial statements under audit. • Context: Several items were discovered that were misclassified. More specifically, several disbursements were noted that contained tangible assets that were more than the capitalization threshold and the useful lives of those assets exceeded one year. • Effect: Expenses were overstated by $302,370 and capital assets were understated by $302,370. • Identification as a repeat finding: This is a repeat finding (See 2024-001). • Recommendation: Review procedures for proper classification of expenditures and enforce capitalization policy. • Views of Responsible Officials and Planned Corrective Actions: We will review our policies and procedures regarding classification of expenditures. We will also enforce our capitalization policy for all tangible assets purchased with a useful life exceeding one year.
We will review our policies and procedures regarding classification of expenditures. We will also enforce our capitalization policy for all tangible assets purchased with a useful life exceeding one year.
2024-001
Tenant Eligibility Requirements • Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850 • Criteria or specific requirement: Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. • Condition: The audit identified exceptions in tenant files exams relating to rent calculations, and overdue reexaminations. • Four files contained rent calculation errors resulting in a projected misstatement of $27,515. • Six files were noted with an overdue re-examination. • Cause: Weakness in internal controls over tenant’s annual certifications relating to proper documentation and calculation of rent. • Identification as a repeat finding: This is a repeat finding (See 2024-002). • Recommendation for Corrective Actions: Establish procedures for management review and supervision over tenant’s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually and (4) other factors that affect the determination of adjusted income or income- based rent in accordance with CFR section 960. • Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 28, 2026.
We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 28, 2025.
2024-002
Davis-Bacon Act Wage Compliance • Federal Program: Public and Indian Housing, FALN No. 14.850. • Criteria: The Davis-Bacon Act requires that all laborers and mechanics employed by contractors or subcontractors for work on construction contracts more than $2,000 financed by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the DOL (40 USC 276a to 276a-7). • Condition: A review of internal controls over monitoring the wage rates for compliance with the Davis Bacon Act revealed that contracts did not include the required prevailing wage rate clause. • Effect: Wage rates may not be in compliance with federal regulations. • Cause: Weakness in internal controls over tenant’s annual certifications relating to proper documentation and calculation of rent. • Identification as a repeat finding: This is a repeat finding (See 2024-003). • Recommendation: Internal controls should be established to collect, review, and monitor wages paid by contractors to its workers as well as ensure all construction contracts greater than $2,000 should include the required prevailing wage rate clause. The Authority should enforce submission of payrolls by withholding funds until the contractor has complied with the certified payroll submission. The Authority should review each payroll to ensure wages are at least the minimum wage rate for the worker’s classification. The Authority should periodically interview construction workers on site to verify the validity of the payroll information. • View of Responsible Officials and Planned Corrective Actions: We were not aware of the requirement to include the required prevailing wage rate clause in every contract greater than $2,000. We will ensure the required clause is included in all construction contracts greater than $2,000.
We were not aware of the requirement to include the required prevailing wage rate clause in every contract greater than $2,000. We will ensure the required clause is included in all construction contracts greater than $2,000.
2024-003
Period Performance • Federal Program: Public Housing Capital Fund, FALN No. 14.872 • Criteria: o Obligations. Unless an extension is approved by HUD, a PHA must obligate at least 90 percent of each Capital Fund grant within 24 months of the funds becoming available to the PHA for obligation. o Expenditures. For Capital Fund grants, unless an extension is approved by HUD, a PHA must expend all grant funds no later than 48 months after execution of the HUD ACC Amendment. o Capital Funds for Operating Costs. Capital Funds are not considered obligated until the PHA has budgeted and drawn down the funds. To meet this requirement, the funds, must be budgeted in Line BLI 1406 (Operations) and the PHA must submit the voucher request in LOCCS. The voucher request date must occur before those funds are reported as obligated in LOCCS under the Obligation & Expenditure tab. • Condition: A review of the Capital Fund expenditures revealed on grant, 501-18 was 100% expended on March 26, 2025, which was beyond the COVID extended due date of May 29, 2024. Current year operating transfers in Capital Fund program 501-23 were obligated on November 14, 2023, prior to the voucher request dates of July 11, 2024, January 13, 2025, and January 24, 2025. • Effect: Expenditures for Capital Fund program 501-18 were not expended by the extended due dates. In addition, operating funds were obligated prior to being drawn down. • Recommendation: Internal controls should be established to ensure expenditure amounts are updated timely and that the PHA reaches its 100% expended threshold within four years of award of the grant. In addition, the PHA should ensure voucher request are made and funds are drawn down for operating costs prior to them being reported as an obligation of the grant. • View of Responsible Officials and Planned Corrective Actions: The 501-18 grant was complicated by the COVID epidemic and we encountered significant delays. Our remaining on-going grants were expended timely. We were not aware of the requirement to submit a voucher request and actually draw down grant funds to be used for operating costs before they are obligated. Going forward, we will request and draw those funds down prior to reporting those funds as being obligated.
The 501-18 grant was complicated by the COVID epidemic and we encountered significant delays. Our remaining on-going grants were expended timely. We were not aware of the requirement to submit a voucher request and actually draw down grant funds to be used for operating costs before they are obligated. Going forward, we will request and draw those funds down prior to reporting those funds as being obligated.
Financial Reporting • Context: In a review of twenty-three tenant eligibility files: • Federal Program: Public Housing Capital Fund, FALN No. 14.872 • Criteria: For modernization projects, the PHA shall submit and Actual Modernization Cost Certificate (AMCC) within 90 days after the expenditure end date. • Condition: Actual Modernization Cost Certificates (AMCC) for Capital Fund grants 501-18, 501-19, 501-20, 501-21, and 501-22 had not been completed and submitted to HUD after the required 90 days following the final expenditure date. • Effect: the PHA failed to timely inform HUD of the completion of its Capital Fund programs. • Recommendation: Internal controls should be established to ensure timely reporting of completed Capital Fund grants. • View of Responsible Officials and Planned Corrective Actions: We completed and submitted SMCC for Capital Fund programs 501-18, 501-19, 501-20, 501-21, and 501-22 on November 12, 2025. We will submit future AMCC for each grant within the 90-day deadline of the final expenditure date.
We completed and submitted SMCC for Capital Fund programs 501-18, 501-19, 501-20, 501-21, and 501-22 on November 12, 2025. We will submit future AMCC for each grant within the 90-day deadline of the final expenditure date.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 31, 2024. 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 July 1, 2025, which was (416 days ago).
What is a management decision? →Material Misclassifications • Criteria: A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions to prevent or detect misstatements of the financial statements on a timely basis. AU-C Section 265 Communication Internal Control Related Matters Identified in an Audit, identifies deficiencies in controls over the period-end financial reporting process, including controls over procedures used to enter transactions and journal entries into the general ledger and to record recurring and nonrecurring adjustments to the financial statements that was not initially identified by the entity’s internal controls even if management subsequently corrects the misstatement. • Condition: Material misclassifications in the financial statements under audit. • Context: Several items were discovered that were misclassified. More specifically, several disbursements were noted that contained tangible assets that were more than the capitalization threshold and the useful lives of those assets exceeded one year. • Effect: Expenses were overstated by $598,437 and capital assets were understated by $598,437. • Recommendation: Review procedures for proper classification of expenditures and enforce capitalization policy. • Views of Responsible Officials and Planned Corrective Actions: We will review our policies and procedures regarding classification of expenditures. We will
We will review our policies and procedures regarding classification of expenditures. We will also enforce our capitalization policy for all tangible assets purchased with a useful life exceeding one year.
2023-001
– Tenant Eligibility Requirements • Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850 • Criteria or specific requirement: Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. • Condition: The audit identified exceptions in tenant files exams relating to rent calculation, income, and deduction verification, executed Forms 50058, and an overdue reexamination. • Context: In a review of twenty-three tenant eligibility files: 1. One file contained a rent calculation error. 2. Two files were noted where the HUD-50058 did not agree with the tenant’s file. 3. One file lacked verification of income. 4. One file did not have support for childcare costs. 5. One file was noted with an overdue re-examination. • Effect: The errors noted are due to lack of supporting documentation. • Cause: Weakness in internal controls over tenant’s annual certifications relating to proper documentation and calculation of rent. • Identification as a repeat finding: This is a repeat finding (See 2023-003). • Recommendation for Corrective Actions: Establish procedures for management review and supervision over tenant’s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually and (4) other factors that affect the determination of adjusted income or income- based rent in accordance with CFR section 960. • Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 28, 2025.
We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 28, 2025.
2023-003
Davis-Bacon Act Wage Compliance • Federal Program: Public and Indian Housing, FALN No. 14.850 and Public Housing Capital Fund, FALN No. 14.872 • Criteria: The Davis-Bacon Act requires that all laborers and mechanics employed by contractors or subcontractors for work on construction contracts more than $2,000 financed by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the DOL (40 USC 276a to 276a-7). • Condition: A review of internal controls over monitoring the wage rates for compliance with the Davis Bacon Act revealed that contracts did not include the required prevailing wage rate clause. • Effect: Wage rates may not be in compliance with federal regulations. • Recommendation: Internal controls should be established to collect, review, and monitor wages paid by contractors to its workers as well as ensure all construction contracts greater than $2,000 should include the required prevailing wage rate clause. The Authority should enforce submission of payrolls by withholding funds until the contractor has complied with the certified payroll submission. The Authority should review each payroll to ensure wages are at least the minimum wage rate for the worker’s classification. The Authority should periodically interview construction workers on site to verify the validity of the payroll information. • View of Responsible Officials and Planned Corrective Actions: We were not aware of the requirement to include the required prevailing wage rate clause in every contract greater than $2,000. We will ensure the required clause is included in all construction contracts greater than $2,000.
We were not aware of the requirement to include the required prevailing wage rate clause in every contract greater than $2,000. We will ensure the required clause is included in all construction contracts greater than $2,000.
2023-004
Procurement Procedures • Federal Program: Public and Indian Housing, FALN No. 14.850 and Public Housing Capital Fund, FALN No. 14.872 • Criteria: Housing Authorities are required to follow a written procurement policy to provide full and open competition. The Authority has not adopted a customized procurement plan but rather defaults to HUD Handbook 7460.8 REV2, dated 2/2007. The handbook states that the Authority must solicit price quotes from an adequate number of qualified sources (generally defined as not less than three) for purchases exceeding the micro purchase limit ($2,000) but less than the sealed bid threshold of $100,000. In situations where the multiple price quotes are not available, the Authority should document its justification for awarding the contract. • Condition: Several instances of smaller contracts were executed without documented bids or quotes nor were noncompetitive proposals properly documented. We noted disbursements totaling $266,715 without proper solicitation and/or documentation of procurement action which we consider to be questioned costs. • Effect: Full and open competition may not have been provided and the lack of sufficient quotes may provide an environment where the contract price may not be reflective of the open market. Recommendation: The Authority should establish procedures to solicit enough price quotes. In a situation where an adequate number of price quotes cannot be obtained, the Authority should document their conclusion as to why the contract should be approved and perform a cost analysis to ensure the costs are. • reasonable. The Authority should consider soliciting quotes on an annual basis for certain repeated contracts (unit painting, unit turnovers, etc.) to help alleviate the documentation burden. • Views of Responsible Officials and Planned Corrective Actions: We have a limited number of competent contractors working in our area but will attempt to obtain more price quotes. In cases where we do not receive an adequate number of price quotes, we will document our reason for awarding the contract and document the cost analysis to determine reasonableness of the costs. We began documenting this procurement at near the end of year, March 31, 2024.
We have a limited number of competent contractors working in our area but will attempt to obtain more price quotes. In cases where we do not receive an adequate number of price quotes, we will document our reason for awarding the contract and document the cost analysis to determine reasonableness of the costs. We began documenting this procurement at near the end of year, March 31, 2024.
2023-005
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 30, 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 June 30, 2024, which was (782 days ago).
What is a management decision? →Tenant Eligibility Requirements. Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850. Criteria or specific requirement: Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. Condition: The audit identified exceptions in tenant files exams relating to waiting list, income verification, and executed Forms 9886. Context: The audit identified one rent calculation errors, five waiting list exceptions, and one file not containing an executed Form 9886 from a sample 23 tenants reviewed. Effect: The errors noted are due to lack of supporting documentation. Cause: Weakness in internal controls over tenant’s annual certifications relating to proper documentation and calculation of rent. Identification as a repeat finding: This is a repeat finding (See 2022-003). Recommendation for Corrective Actions: Establish procedures for management review and supervision over tenant’s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually and (4) other factors that affect the determination of adjusted income or income- based rent in accordance with CFR section 960. Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 29, 2024.
We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 29, 2024.
2022-003
Davis-Bacon Act Wage Compliance. Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850. Criteria: The Davis-Bacon Act requires that all laborers and mechanics employed by contractors or subcontractors for work on construction contracts more than $2,000 financed by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the DOL (40 USC 276a to 276a-7). Condition: A review of internal controls over monitoring of the wage rates for compliance with the Davis Bacon Act revealed that contracts were not being monitored for compliance with the Act. Wage rates for local and smaller contractors were not being monitored nor were any certified payrolls provided to the Authority. Effect: Wage rates may not be in compliance with federal regulations. Recommendation: Internal controls should be established to collect, review, and monitor wages paid by contractors to its workers. The Authority should enforce submission of payrolls by withholding funds until the contractor has complied with the certified payroll submission. The Authority should review each payroll to ensure wages are at least the minimum wage rate for the worker’s classification. The Authority should periodically interview construction workers on site to verify the validity of the payroll information. View of Responsible Officials and Planned Corrective Actions: We were not aware of the requirement to monitor wage rates for contracts below the sealed bid procurement requirements. We will establish internal controls to collect, review and monitor wages paid by contractors to its workers. We will enforce submission of payrolls by withholding funds until the contractor has complied with the certified payroll submission. We will review each payroll to ensure wages are at least the minimum wage rate for the worker’s classification. We will also periodically interview construction workers on site to verify the validity of the payroll information.
We were not aware of the requirement to monitor wage rates for contracts below the sealed bid procurement requirements. We will establish internal controls to collect, review and monitor wages paid by contractors to its workers. We will enforce submission of payrolls by withholding funds until the contractor has complied with the certified payroll submission. We will review each payroll to ensure wages are at least the minimum wage rate for the worker’s classification. We will also periodically interview construction workers on site to verify the validity of the payroll information.
Procurement Procedures. Criteria: Housing Authorities are required to follow a written procurement policy to provide full and open competition. The Authority has not adopted a customized procurement plan but rather defaults to HUD Handbook 7460.8 REV2, dated 2/2007. The handbook states that the Authority must solicit price quotes from an adequate number of qualified sources (generally defined as not less than three) for purchases exceeding the micro purchase limit ($2,000) but less than the sealed bid threshold of $100,000. In situations where the multiple price quotes are not available, the Authority should document its justification for awarding the contract. Condition: Several instances of smaller contracts were executed without documented bids or quotes nor were noncompetitive proposals properly documented. We noted disbursements totaling $266,715 without proper solicitation and/or documentation of procurement action which we consider to be questioned costs. Effect: Full and open competition may not have been provided and the lack of sufficient quotes may provide an environment where the contract price may not reflective of the open market. Recommendation: The Authority should establish procedures to solicit enough price quotes. In the situation where an adequate number of price quotes cannot be obtained, the Authority should document their conclusion as why the contract should be approved and perform a cost analysis to ensure the costs are reasonable. The Authority should consider soliciting quotes on annual basis for certain repeated contracts (unit painting, unit turnovers, etc.) to help alleviate the documentation burden. Views of Responsible Officials and Planned Corrective Actions: We have a limited number of competent contractors working in our area but will attempt to obtain more price quotes. In cases where we do not receive an adequate number of price quotes, we will document our reason for awarding the contract and document the cost analysis to determine reasonableness of the costs.
We have a limited number of competent contractors working in our area but will attempt to obtain more price quotes. In cases where we do not receive an adequate number of price quotes, we will document our reason for awarding the contract and document the cost analysis to determine reasonableness of the costs.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 27, 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 27, 2023, which was (1151 days ago).
What is a management decision? →Finding 2022-003 ? Information on the federal program: CFDA 14.850; U.S Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW-7097; fiscal year ending March 31, 2022. ? Criteria or specific requirement (including statutory, regulatory, or other citation): Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. ? Condition: The audit identified exceptions in tenant file exams relating to waiting list, rent choice, utility allowances and flat rate rent requirements. ? Questioned costs: My sample projected error was $85,031 due to incorrect calculation of flat rate rent amounts, in relation to the entire population. ? Context: The audit identified 4 rent calculation errors, 3 waiting list exceptions, and 4 rent choice requirement exceptions from my sample of 24 tenants reviewed. Also, the utility allowance and flat rate rent schedules have not been properly updated. ? Effect: The errors noted were due to missing documentation, out of date utility allowances and flat rate rents. The potential misstatement is considered to be material to the financial statements. ? Cause: Weakness in internal controls over tenant?s annual certifications relating to proper documentation and calculation of rent. ? Identification as a repeat finding: This is not a repeat audit finding. ? Recommendation for Corrective Action: Establish procedures for managements review and supervision over tenant?s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of: (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually updated reflecting the current cost and using normal patterns of consumption for the community as a whole, and current local utility rates; and (4) other factors that affect the determination of adjusted income or income-based rent in accordance with 24 CFR section 960. ? Views of Responsible Officials and Planned Corrective Actions: We will review tenant?s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by December 31, 2022.
Finding 2022-003 Criteria or Specific Requirement: CFDA 14.850; US Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW-7097; fiscal year ending March 31, 2022. Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. Recommendation for Corrective Action: Establish procedures for managements review and supervision over tenant?s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of: (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually updated reflecting the current cost and using normal patterns of consumption for the community as a whole, and current local utility rates; and (4) other factors that affect the determination of adjusted income or income-based rent in accordance with 24 CFR section 960. Views of Responsible Officials: We will review tenant?s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. Planned Corrective Action/Action Taken: We will review tenant?s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by December 31, 2022. Anticipated Completion Date: We will have this resolved by December 31, 2022 Auditors Evaluation of Auditee Comments: Management?s comments in relation to its corrective action plan appear reasonable, valid, and supported with sufficient, appropriate evidence.
Finding 2022-004 ? Information on the federal program: CFDA 14.850; U.S Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW-7097; fiscal year ending March 31, 2022. ? Criteria or specific requirement (including statutory, regulatory, or other citation): Allowable costs/cost principals in accordance with 24 CFR 200, the PHA Annual Contributions Contract, and PHA Internal Control Policy. ? Condition: The audit identified exceptions in expenditures relating to allowability, in that certain disbursements were not executed in accordance with PHA operating controls, including the internal control policy, annual contributions contract, procurement policy, and operating budget. ? Questioned costs: My sample of 70 disbursements contained 3 exceptions identified as unallowable costs associated with payments for items questioned as necessary costs in providing for government subsidized housing operations. I noted $515 of sales taxes paid, $75 in unsubstantiated items, and $6,084 in questionable items purchased using online platforms with a credit card not authorized by the internal control policy, delivered to a personal residence. I also noted budgetary overruns in controlled accounts not identified by the PHA (see Note 2 to the financial statements). ? Context: The audit identified 3 sample exceptions from my sample of 70 disbursements reviewed. ? Effect: The errors noted were due to a lack of controls over the purchasing process. The projected misstatement of $27,311 is considered to be a significant deficiency. ? Cause: Weakness in internal controls over purchasing relating to proper authorization, documentation, program compliance and budgetary procedures. ? Identification as a repeat finding: This is not a repeat audit finding. ? Recommendation for Corrective Action: Establish and enforce controls over Board of Commissioners and Managements review and supervision of purchasing procedures. Specific internal control and budgetary procedures should be implemented to ensure all costs are reasonable and necessary for the economical operation of the project for the purpose of serving families of low-income status in accordance with 24 CFR section 200. ? Views of Responsible Officials and Planned Corrective Actions: We will review existing policies, implementing control procedures to correct these deficiencies. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by December 31, 2022.
Finding 2022-004 Criteria or Specific Requirement: CFDA 14.850; US Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW-7097; fiscal year ending March 31, 2022.Allowable costs/cost principals in accordance with 24 CFR 200, the PHA Annual Contributions Contract, and PHA Internal Control Policy. Recommendation for Corrective Action: Establish and enforce controls over Board of Commissioners and Managements review and supervision of purchasing procedures. Specific internal control and budgetary procedures should be implemented to ensure all costs are reasonable and necessary for the economical operation of the project for the purpose of serving families of low-income status in accordance with 24 CFR section 200. Views of Responsible Officials: We will review existing policies, implementing control procedures to correct these deficiencies. We will also provide increased supervision and training over this area. Planned Corrective Action/Action Taken: We will review existing policies, implementing control procedures to correct these deficiencies. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by December 31, 2022. Anticipated Completion Date: We will have this resolved by December 31, 2022 Auditors Evaluation of Auditee Comments: Management?s comments in relation to its corrective action plan appear reasonable, valid, and supported with sufficient, appropriate evidence.
Finding 2022-005 ? Information on the federal program: CFDA 14.872; U.S Department of Housing and Urban Development; Public Housing Capital Fund; annual contributions contract number FW-7097; fiscal year ending March 31, 2022. ? Criteria or specific requirement (including statutory, regulatory, or other citation): Period of Performance in accordance with 24 CFR 905 and the PHA Annual and 5-Year Action Plan. ? Condition: The audit identified exceptions in properly obligating and expending Capital Fund Programs (CFP) in accordance with CFP program requirements. ? Questioned costs: There were no questioned costs, although the PHA must obligate at least 90 percent of each CFP program within 24 months of the funds of becoming available to the PHA for obligation. Additionally, unless HUD approves an extension, the PHA must expend all grant funds no later than 48 months after HUD executes the ACC Amendment, 24 CFR section 905.306(f). Failure to properly obligate/expend for any month during the fiscal year, HUD shall withhold all new Capital Fund grants from any PHA that has unobligated funds in violation of the obligation/expenditure requirements. The penalty will be imposed once the violations are known. ? Context: CFP 501-17 has not been closed out, although is fully expended. CFP 501-18 is 47% expended as of August 26, 2022. There has been no disbursement activity in CFP?s 501-19, 501-20, 501-21, or 501-22. ? Effect: Non-compliance with the period of performance requirements could result in the loss of future CFP funding. ? Cause: Weakness in internal controls over managing the CFP?s in accordance with the PHA Annual and 5-Year Action Plan. ? Identification as a repeat finding: This is not a repeat audit finding. ? Recommendation for Corrective Action: Establish and enforce controls over administration of CFP?s to ensure safe, sanitary, and affordable dwellings are maintained for the purpose of serving families of low-income status in accordance with 24 CFR section 905. ? Views of Responsible Officials and Planned Corrective Actions: We will review existing control procedures to correct these deficiencies. We are currently working with contractors to complete improvement projects in a timely manner. We will also provide increased supervision and training over the administration of Capital Fund Programs. We anticipate a complete resolution of this type of error by December 31, 2022.
Finding 2022-005 Criteria or Specific Requirement: CFDA 14.872; US Department of Housing and Urban Development; Public Housing Capital Fund; annual contributions contract number FW-7097; fiscal year ending March 31, 2022.Period of Performance in accordance with 24 CFR 905 and the PHA Annual and 5-Year Action Plan. Recommendation for Corrective Action: Establish and enforce controls over administration of CFP?s to ensure safe, sanitary, and affordable dwellings are maintained for the purpose of serving families of low-income status in accordance with 24 CFR section 905. Views of Responsible Officials: We will review existing control procedures to correct these deficiencies. We are currently working with contractors to complete improvement projects in a timely manner. We will also provide increased supervision and training over the administration of this area. Planned Corrective Action/Action Taken: We will review existing control procedures to correct these deficiencies. We are currently working with contractors to complete improvement projects in a timely manner. We will also provide increased supervision and training over the administration of this area. We anticipate a complete resolution of this type of error by December 31, 2022. Anticipated Completion Date: We will have this resolved by December 31, 2022 Auditors Evaluation of Auditee Comments: Management?s comments in relation to its corrective action plan appear reasonable, valid, and supported with sufficient, appropriate evidence. If the Oversight Agency has questions regarding this plan, please call Clarice Sneed, Executive Director, at (870)295-2691.
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 3, 2020. 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 3, 2021, which was (1997 days ago).
What is a management decision? →Finding 2020-001 ? Criteria or Specific Requirement: The cooperation agreement with the local governing body provides for exemption from real and personal property taxes, in consideration for annual payments in lieu of taxes (PILOT), for the substantial cost of providing services to tenants and their children. ? Condition: The PHA has not remitted PILOT taxes for the fiscal years ending March 31, 2018 through March 31, 2020. ? Context: "Payments in Lieu of Taxes? (PILOT) are obligations to local governments to help offset losses in property taxes due to the existence of nontaxable property within their boundaries. ? Effect: The PHA has accumulated a current liability of $53,325 representing three years of unremitted PILOT. ? Cause: Lack of controls over payments in lieu of taxes. ? Recommendation for Corrective Action: HUD provides operating funds for the payment of PILOT, and consequently these expenses are valid expenses that must be paid. Further, with no signed wavier showing that the payments were forgiven, we recommend payment of the amounts due, and that subsequent years PILOT be remitted within 12 months of the PHA?s fiscal year end. ? Views of Responsible Officials and Planned Corrective Actions: We are working with the City to obtain a wavier of some or all of the PILOT liability. We will either obtain a written notice that the payments were forgiven, or we will pay the balance due by December 31, 2020. If a wavier is obtained, it will be submitted to the Board for approval and we will ensure that the liability is properly removed from our financial statements by our fee accountant.
CORRECTIVE ACTION PLAN YEAR ENDED MARCH 31, 2020 Oversight Agency: U.S. Department of Housing and Urban Development The Housing Authority of the City of Marianna, Arkansas respectively submits the following corrective action plan for the year ended March 31, 2020. 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, 2020 audit report are discussed below. The findings are numbered to correspond to the audit findings disclosed in Section II of the Schedule of Findings and Questioned Costs. There were no findings in Section III of the report. Finding 2020-001 Criteria or Specific Requirement: The cooperation agreement with the local governing body provides for exemption from real and personal property taxes, in consideration for annual payments in lieu of taxes (PILOT), for the substantial cost of providing services to tenants and their children. Recommendation for Corrective Action: HUD provides operating funds for the payment of PILOT, and consequently these expenses are valid expenses that must be paid. Further, with no signed wavier showing that the payments were forgiven, we recommend payment of the amounts due, and that subsequent years PILOT be remitted within 12 months of the PHA?s fiscal year end. Views of Responsible Officials: We are working with the City to obtain a wavier of some or all of the PILOT liability. If a wavier is obtained, it will be submitted to the Board for approval and we will ensure that the liability is properly removed from our financial statements by our fee accountant. Planned Corrective Action/Action Taken: We will either obtain a written notice that the payments were forgiven, or we will pay the balance due. Anticipated Completion Date: We will have this resolved by December 31, 2020 Auditors Evaluation of Auditee Comments: Management?s comments in relation to its corrective action plan appear reasonable, valid, and supported with sufficient, appropriate evidence. If the Oversight Agency has questions regarding this plan, please call Clarice Sneed, Executive Director, at (870)295-2691. Sincerely, Clarice Sneed, Executive Director
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 5, 2019. 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 5, 2020, which was (2360 days ago).
What is a management decision? →Information on the federal program: CFDA 14.850; U.S Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW7097; fiscal year ending March 31, 2019.
Criteria or specific requirement (including statutory, regulatory, or other citation): Reporting requirements in accordance with 24 CFR 135.3(a)(1) and 135.90 requiring submission of HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and very low-Income Persons (OMB No. 2529-0043).
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.
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