FAC Explorer

Audit 309443

FY End
2023-09-30
Total Expended
$8.56M
Findings
2
Programs
4
Organization: The Housing Authority of the City of Aiken, South Carolina (SC)
Year: 2023 Accepted: 2024-06-20
Auditor: Henderson & Pilleteri LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401352 2023-001 Material Weakness Yes A
977794 2023-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.28M Yes 0
14.850 Public and Indian Housing $874,550 Yes 1
14.872 Public Housing Capital Fund $379,452 - 0
10.558 Child and Adult Care Food Program $26,079 - 0

Contacts

Name Title Type
VSYDLML9KCD5 Chanosha Lawton Auditee
8036177982 Roy W. Henderson Jr. Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority 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 the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate 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. The Authority has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
ALN 14.850 – Public and Indian Housing Program – Activities Allowed, Unallowed Condition and Criteria: 24 CFR 990.280(b) permits the use of Public and Indian Housing Program (PIH) for specific project related operating expenses. It does not permit such amounts to be loaned to related parties. In prior years, the Authority had loaned PIH monies to related parties. As of September 30, 2023, $98,663 of PIH loans remain outstanding to discretely presented component units of the Authority. $126,892 remains outstanding to other programs of the Authority, $100,642 of which was loaned to the Business Activities program which houses the Authority's non-federal funds. Amount of Questioned Costs: $199,305 Context: The Authority’s Public Housing Program has miscellaneous receivables from Edgefield Senior Housing, LLC, Valley Homes, LLC, and other related parties in the amounts of $9,152, $22,459, and $67,052, respectively. The Public Housing Program is also due $100,642 from the Business Activities program. Cause: Management of the Authority in prior years (who were different individuals than the current management of the Authority) either did not understand or did not follow federal guidelines. Effect: Public Housing monies were used for unallowed purposes. Auditor’s Recommendation: The management of the Authority should continue to pursue collection of these amounts. Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation. The current management of the Authority understands these federal guidelines, has stopped any further loans of Public Housing monies to related parties or other programs and is actively pursuing collection efforts.
Finding 2023-001
ALN 14.850 – Public and Indian Housing Program – Activities Allowed, Unallowed Condition and Criteria: 24 CFR 990.280(b) permits the use of Public and Indian Housing Program (PIH) for specific project related operating expenses. It does not permit such amounts to be loaned to related parties. In prior years, the Authority had loaned PIH monies to related parties. As of September 30, 2023, $98,663 of PIH loans remain outstanding to discretely presented component units of the Authority. $126,892 remains outstanding to other programs of the Authority, $100,642 of which was loaned to the Business Activities program which houses the Authority's non-federal funds. Amount of Questioned Costs: $199,305 Context: The Authority’s Public Housing Program has miscellaneous receivables from Edgefield Senior Housing, LLC, Valley Homes, LLC, and other related parties in the amounts of $9,152, $22,459, and $67,052, respectively. The Public Housing Program is also due $100,642 from the Business Activities program. Cause: Management of the Authority in prior years (who were different individuals than the current management of the Authority) either did not understand or did not follow federal guidelines. Effect: Public Housing monies were used for unallowed purposes. Auditor’s Recommendation: The management of the Authority should continue to pursue collection of these amounts. Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation. The current management of the Authority understands these federal guidelines, has stopped any further loans of Public Housing monies to related parties or other programs and is actively pursuing collection efforts.