Audit 369480

FY End

2024-12-31

Total Expended

$1.12M

Findings

1

Programs

1

Organization: Genesis Homes, Inc. (SC)

Year: 2024 Accepted: 2025-09-30

Auditor: The Hobbs Group P A

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1157173	2024-001	Material Weakness	Yes	EN

ALN	Program	Spent	Major	Findings
14.239	Home Investment Partnerships Program	$1.12M	Yes	1

Contacts

Name	Title	Type
HBT3MYYANG68	Alex McNair	Auditee
8649189609	Mark Hobbs	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Genesis Homes, Inc., under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Genesis Homes, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Genesis Homes, Inc.

Expenditures reported on the Schedule are reported on the accrual basis of accounting described in Note A to the basic financial statements. 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.

Genesis Homes, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.

Federal expenditures for the Home Investment Partnership Program and the National Housing Trust Fund include $1,122,589, in loans outstanding at December 31, 2024 for which the grantors impose continuing compliance requirements. 20

Finding Details

Finding 2024-001

SECTION III -- FEDERAL AWARDS FINDINGS Finding 2024-001: Information on the Federal Program : 14.239 - Home Investment Partnership Program, United States Department of Housing and Urban Development. Pass-Through Entity: South Carolina State Housing Finance and Development Authority. Award Number: M19-SG450252. Compliance Requirements: Eligibility. Type of Finding: Noncompliance. Criteria: The U.S. Department of Housing and Urban Development (HUD) requires that tenants of HOME-assisted rental housing be income-eligible at initial occupancy and that their income be recertified annually to ensure ongoing compliance with HOME requirements. Condition: During our testing of tenant files for HOME-assisted units, we noted that annual income recertifications were not performed for certain tenants. Specifically, two out of five tenant files reviewed did not contain documentation of a recertification within the required 12-month period. Cause: The Organization did not have adequate controls in place to ensure timely completion and documentation of annual recertifications. Effect or Potential Effect: Failure to perform and document annual income recertifications increases the risk that ineligible tenants may occupy HOME-assisted units or that tenant rents may exceed allowable limits. This represents noncompliance with HUD requirements and may result in questioned costs or potential repayment obligations to HUD if tenants are found to be ineligible. Context: We tested 5 tenant files for compliance with the annual income recertification requirements. Of these, 2 files did not contain documentation of an income recertification within the required 12-month period. Recommendation : We recommend that the Organization strengthen controls over the annual recertification process. Views of Responsible Official: Management of the Organization is in agreement with this finding, and has implemented proper policies and procedures to ensure the annual recertification is completed properly.