Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Emergency Rental Assistance (ERA) Assistance Listing Number: 21.023 Federal Award Identification Number and Year: ERAE0406 and ERAE0407 - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Monthly and quarterly reports are required to be submitted in accordance with Treasury guidance beginning in the first quarter of 2021 through September of 2022 for ERA1 and through September of 2025 for ERA 2. The monthly and quarterly reports are required to be submitted by the 15th of the following month. Condition: The Authority did not maintain documentation to support reported amounts. Questioned costs: Unable to determine. Context: A sample of 7 reports were unsupported and did not include documentation of review and approval. The sample was statistically valid. Cause: Documentation was not maintained that supported the amounts reported. Effect: The Authority is not in compliance with ERA reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: The South Carolina State Housing Finance and Development Authority (the Authority) must inspect a unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control (QC) re-inspections (24 CFR sections 982.405(a) and 982.405(b)). Condition: The Authority did not perform HQS and QC inspections in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 units found that 2 units that were not inspected timely. The Authority did not perform QC inspections during the fiscal year. The sample was statistically valid. Cause: HQS inspections were not completed within the required timeframe for 2 units. Due to the COVID-19 pandemic, QC inspections were waived under PIH notice 2021-14 until December 31, 2021; however, the Authority did not perform QC inspections for the period January 1, 2022 ? June 30, 2022. Effect: The Authority is not in compliance with HQS and QS inspection requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $7,185 were calculated based on the HAP payment for units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 16 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 16 out of 40 failed inspections. ? The Authority did not properly abate HAP for 3 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Authorities are required to enter into depository agreements with their financial institutions in the form required by the U.S. Department of Housing and Urban Development (HUD). The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: The Authority does not have a depository agreement in place with HUD. Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Questioned costs: Unable to determine. Context: A depository agreement has not been executed. Cause: The Authority?s Housing Voucher Cluster funds are not deposited in a separate interest-bearing account. Effect: The Authority is not in compliance with depository agreement requirements. Repeat Finding: No. Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871/14.879 Federal Award Identification Number and Year: SC911VO - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must determine reasonable rent during the term of the contract before any increase in the rent to owner. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (24 CFR sections 982.158(f)(7) and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: A sample of 40 contract rent changes found that rent reasonableness was not performed prior to the rent increase in 2 instances. The sample was statistically valid. Cause: Rent reasonableness was not determined prior to the effective date of the rent change. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that rent reasonableness is determined prior to the effective date of the change in rent. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Emergency Rental Assistance (ERA) Assistance Listing Number: 21.023 Federal Award Identification Number and Year: ERAE0406 and ERAE0407 - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Monthly and quarterly reports are required to be submitted in accordance with Treasury guidance beginning in the first quarter of 2021 through September of 2022 for ERA1 and through September of 2025 for ERA 2. The monthly and quarterly reports are required to be submitted by the 15th of the following month. Condition: The Authority did not maintain documentation to support reported amounts. Questioned costs: Unable to determine. Context: A sample of 7 reports were unsupported and did not include documentation of review and approval. The sample was statistically valid. Cause: Documentation was not maintained that supported the amounts reported. Effect: The Authority is not in compliance with ERA reporting requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Views of responsible officials: There is no disagreement with the audit finding.