Audit 310317

FY End

2023-09-30

Total Expended

$1.52M

Findings

2

Programs

3

Organization: Housing and Community Redevelopment Authority of Marlboro County (SC)

Year: 2023 Accepted: 2024-06-27

Auditor: Scmo

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
403174	2023-001	Significant Deficiency	-	L
979616	2023-001	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
14.871	Section 8 Housing Choice Vouchers	$1.16M	Yes	1
14.850	Public and Indian Housing	$233,182	-	0
14.872	Public Housing Capital Fund	$121,039	-	0

Contacts

Name	Title	Type
E1LZLP4KJDD1	Jennifer Manning	Auditee
8436694163	Chad Porter	Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Accounting Policies: Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by the Housing Authority of Cheraw (the Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: Housing Authority of Cheraw elected to not use the 10% de minimums indirect cost rate allowed in the Uniform Guidance. Scope of Presentation The accompanying schedule presents the expenditures incurred (and related awards received) by Housing and Community Redevelopment Authority of Marlboro County (Authority) that are reimbursable under federal programs of federal agencies providing financial assistance and state awards. For the purposes of this schedule, only the portion of program expenditures reimbursable with such federal or state funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal or state reimbursement authorized or the portion of the program expenditures that were funded with local or other nonfederal funds are excluded from the accompanying schedule. Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Expenditures are recognized in the accounting period in which the related liability is incurred. Expenditures reported included any property or equipment acquisitions incurred under the federal program. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Indirect Cost Rate Housing and Community Redevelopment Authority of Marlboro County elected to not use the 10% de minimums indirect cost rate allowed in the Uniform Guidance

Finding Details

Finding 2023-001

The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. During our audit, we noticed on four (4) different occasions that HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. The Authority has roughly 250 vouchers issued through out the fiscal year under examination which would translate to 3,000 Housing Assistance Payment transactions for the year. Of these, we reviewed 40 individual Housing Assistance Payment transactions, and found 4 instances of noncompliance. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in noncompliance of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management agrees.

Finding 2023-001

The Authority is required calculated utility allowances in accordance with its utility allowance standards and reflected in HUD form 52667. The Authority must use the lower of the approved voucher bedroom size or actual bedroom size when calculating the Utility Allowance to use in the calculation. During our audit, we noticed on four (4) different occasions that HUD Forms 50058 had utility allowances calculated not in accordance with the above criteria. The Authority has roughly 250 vouchers issued through out the fiscal year under examination which would translate to 3,000 Housing Assistance Payment transactions for the year. Of these, we reviewed 40 individual Housing Assistance Payment transactions, and found 4 instances of noncompliance. Personnel responsible for calculating the utility allowances were not informed of requirements and no internal controls were in place to ensure compliance. The Authority was in noncompliance of the Federal Regulation which resulted in errors in calculating Housing Assistance Payments (HAP) and utility reimbursement payments. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to the Section 8 Housing Choice Voucher Program. Management agrees.