Audit 295163

FY End

2023-06-30

Total Expended

$1.13M

Findings

Programs

Organization: Housing Authority of Fort Mill (SC)

Year: 2023 Accepted: 2024-03-14

Auditor: 263670494

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
377373	2023-001	Significant Deficiency	-	E
377374	2023-001	Significant Deficiency	-	E
377375	2023-001	Significant Deficiency	-	E
377376	2023-001	Significant Deficiency	-	E
953815	2023-001	Significant Deficiency	-	E
953816	2023-001	Significant Deficiency	-	E
953817	2023-001	Significant Deficiency	-	E
953818	2023-001	Significant Deficiency	-	E

Programs

ALN	Program	Spent	Major	Findings
14.241	Housing Opportunities for Persons with Aids	$160,718	Yes	1

Contacts

Name	Title	Type
QJLTM4AXKQZ5	Connie C. Howard	Auditee
8035476787	Dale R. Rector	Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Fort Mill Housing Services, Inc. did not elect to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Fort Mill Housing Services, Inc. under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Fort Mill Housing Services, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.

Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Fort Mill Housing Services, Inc. did not elect to use the 10% de minimis cost rate. Fort Mill Housing Services, Inc. provided no federal awards to subrecipients during the fiscal year ending June 30, 2023.

Title: DISCLOSURE OF OTHER FORMS OF ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Fort Mill Housing Services, Inc. did not elect to use the 10% de minimis cost rate. Fort Mill Housing Services, Inc. received no federal awards of non-monetary assistance that are required to be disclosed for the year ended June 30, 2023. Fort Mill Housing Services, Inc. had no loans, loan guarantees, or federally restricted endowment funds required to be disclosed for the fiscal year ended June 30, 2023.

Finding Details

Finding 2023-001

Finding 2023-001 – Housing Opportunities for Persons with AIDS Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Housing Opportunities for Persons with AIDS Program – ALN #14.241, Grant Year 2022 & 2023 Condition & Cause: We reviewed ten (10) Housing Opportunities for Persons with AIDS Tenant Files and noted three (3) files not in compliance, or 30%. There were two errors consisting of failure to correctly calculate tenant income, and one error where the Authority failed to complete an annual recertification. The income calculation and verification deficiencies were the result of employee error, and failure by the Agency to properly review and correct the errors. We were able to extrapolate the total potential misstatement and found it to be immaterial to the financial statements. However, due to the percentage of files not in compliance, we feel the Agency has a significant deficiency in this area. Criteria: The Code of Federal regulations, the Housing Authority’s Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Opportunities for Persons with AIDS tenant files. Effect: Improper calculation and documentation of tenant income can result in misstatement of the financial statements, improper calculation of HAP subsidy, and noncompliance with Federal provisions governing the Housing Opportunities for Persons with AIDS program. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are additional deficiencies. We also recommend that the Agency increase their quality control review to adequately monitor compliance with local and federal regulations as it pertains to the maintenance of the tenant files. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes

Finding 2023-001