REPORT DIGEST

ILLINOIS HOUSING DEVELOPMENT AUTHORITY

SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  March 30, 2023

FINDINGS THIS AUDIT: 4

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  1 -- 2 -- 3
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 2 -- 4

FINDINGS LAST AUDIT: 5

Category 1: Findings that are material
weaknesses in internal control and/or
a qualification on compliance with
State laws and regulations (material
noncompliance).
Category 2: Findings that are
significant deficiencies in internal
control and noncompliance with State
laws and regulations.
Category 3: Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

State of Illinois, Office of the
Auditor General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report
contact:
Office of the Auditor General, Iles
Park Plaza, 740 E. Ash Street,
Springfield, IL 62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are
also available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION

This digest covers our Single Audit of
the Illinois Housing Development
Authority (Authority or IHDA) for the
year ended June 30, 2022.  A separate
Financial Audit as of and for the year
ended June 30, 2022, was previously
released on December 21, 2022. A
separate Compliance Examination for
the year ended June 30, 2022 will be
released at a later date. In total,
this report contains 4 findings, 2 of
which were reported in the Financial
Audit.

SYNOPSIS

• (22-3) The Authority did not follow
its established policies and
procedures for monitoring
subrecipients of the Section 8
Project-Based program.
• (22-4) The Authority did not execute
an intergovernmental agreement with
other State of Illinois  agencies
before being subgranted funding for
the Coronavirus State and Local Fiscal
Recovery Funds and Housing Assistance
Fund programs.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAILURE TO FOLLOW ESTABLISHED
SUBRECIPIENT MONITORING PROCEDURES FOR
THE SECTION 8 PROJECT-BASED CLUSTER
PROGRAM

The Authority did not follow its
established policies and procedures
for monitoring subrecipients of the
Section 8 Project-Based (Section 8)
program.

The Authority has implemented
procedures whereby program staff
perform periodic on-site inspections
and desk reviews of subrecipients’
compliance with regulations applicable
to the Section 8 Cluster program.
These reviews are formally documented
and include the issuance of a report
of the review results to the
subrecipient summarizing the
procedures performed, results of the
procedures, and any findings or
performance improvement observations
noted. The Authority’s policies
require the subrecipient file to be
closed within 90 days of the
subrecipient being notified of any
findings.

During our test work over monitoring
review procedures performed for 8
subrecipients (with expenditures of
$3,420,351) of the Section 8 Cluster
program, we noted the Authority has
not established adequate control
activities to ensure its monitoring
procedures were followed in
communicating the results of its
monitoring reviews. We noted the
Authority did not send the findings of
the Management and Occupancy Reviews
(MORs) to two subrecipients (with
expenditures totaling $1,799,238) in a
timely manner (within 30 days of
onsite inspection). Specifically, one
MOR was 33 days after the onsite
inspection and the other MOR was not
sent until 41 days after the onsite
inspection. (Finding 3, pages 17-18)
This finding has been reported since
2011.

We recommended the Authority ensure
monitoring files are completed and
closed in accordance with established
policies and procedures.

Authority officials agreed with the
recommendation.

FAILURE TO EXECUTE INTERGOVERNMENTAL
AGREEMENTS

The Authority did not execute an
intergovernmental agreement with other
State of Illinois agencies before
being subgranted funding for the
Coronavirus State and Local Fiscal
Recovery Funds (SLFRF) and Housing
Assistance Fund (HAF) programs.

During our testwork over the SLFRF and
HAF programs, we requested IHDA
provide us with the grant agreement/
subrecipient agreements between IHDA
and other State of Illinois agencies
who passed through SLFRF and HAF
funding to the Authority during fiscal
year 2022. After discussion with
Authority management, we learned that
no such subrecipient agreements/
intergovernmental agreements were
executed for the SLFRF and HAF funding
IHDA received.  (Finding 4, pages
19-20)

We recommended the Authority obtain
intergovernmental agreements with
other State of Illinois agencies
before being subgranted funding.

Authority officials agreed with the
recommendation.
AUDITOR’S OPINIONS

The financial audit report was
previously released.  The auditors
stated the financial statements of the
Authority as of and for the year ended
June 30, 2022, are fairly stated in
all material respects.

The auditors also conducted a Single
Audit of the Authority as required by
the Uniform Guidance.  The auditors
stated the Authority complied, in all
material respects, with the types of
compliance requirements that could
have a direct and material effect on
the Authority’s major programs for the
year ended June 30, 2022.

This Single Audit was conducted by
CliftonLarsonAllen LLP.

JANE CLARK
Division Director

This report is transmitted in
accordance with Section 3-14 of the
Illinois State Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:TLK