Audit 6305

U.S. Department of Treasury CFDA # 21.023, 2021 Award Year, Award Number: Not Provided COVID-19 Emergency Rental Assistance Program (ERA) Activities Allowed, Allowable Costs, and Eligibility Significant Deficiency in Internal Controls Criteria: Financial assistance to households includes payment of rent, rental arrears, utilities and energy costs, utility and energy costs in arrears, and other expenses related to housing pursuant to 15 USC 9058a(c)(2)(A). Condition: One homebuyer payment was allocated to ERA instead of the Homeownership Assistance Fund (HAF). Cause: An error was made by accounting in allocating the award to the ERA program. Effect: Payment was made to an individual that was not eligible under the ERA program. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 43 of the 212 SDHDA-awarded payments and the total payments made by SDHDA directly to tenants was $332,487. Repeat Finding from Prior Year(s): No Recommendation: We recommend a high-level review occur for allocation of awards to ensure that awards are allocated to the proper program. We also recommend that the error noted above be corrected and allocated to the proper program. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Treasury CFDA # 21.023, 2021 Award Year, Award Number: Not Provided COVID-19 Emergency Rental Assistance Program (ERA) Activities Allowed, Allowable Costs, and Eligibility Significant Deficiency in Internal Controls Criteria: Financial assistance to households includes payment of rent, rental arrears, utilities and energy costs, utility and energy costs in arrears, and other expenses related to housing pursuant to 15 USC 9058a(c)(2)(A). Condition: One homebuyer payment was allocated to ERA instead of the Homeownership Assistance Fund (HAF). Cause: An error was made by accounting in allocating the award to the ERA program. Effect: Payment was made to an individual that was not eligible under the ERA program. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 43 of the 212 SDHDA-awarded payments and the total payments made by SDHDA directly to tenants was $332,487. Repeat Finding from Prior Year(s): No Recommendation: We recommend a high-level review occur for allocation of awards to ensure that awards are allocated to the proper program. We also recommend that the error noted above be corrected and allocated to the proper program. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Treasury CFDA # 21.023, 2021 Award Year, Award Number: Not Provided COVID-19 Emergency Rental Assistance Program (ERA) Activities Allowed, Allowable Costs, and Eligibility Significant Deficiency in Internal Controls Criteria: Financial assistance to households includes payment of rent, rental arrears, utilities and energy costs, utility and energy costs in arrears, and other expenses related to housing pursuant to 15 USC 9058a(c)(2)(A). Condition: One homebuyer payment was allocated to ERA instead of the Homeownership Assistance Fund (HAF). Cause: An error was made by accounting in allocating the award to the ERA program. Effect: Payment was made to an individual that was not eligible under the ERA program. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 43 of the 212 SDHDA-awarded payments and the total payments made by SDHDA directly to tenants was $332,487. Repeat Finding from Prior Year(s): No Recommendation: We recommend a high-level review occur for allocation of awards to ensure that awards are allocated to the proper program. We also recommend that the error noted above be corrected and allocated to the proper program. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Treasury CFDA # 21.023, 2021 Award Year, Award Number: Not Provided COVID-19 Emergency Rental Assistance Program (ERA) Activities Allowed, Allowable Costs, and Eligibility Significant Deficiency in Internal Controls Criteria: Financial assistance to households includes payment of rent, rental arrears, utilities and energy costs, utility and energy costs in arrears, and other expenses related to housing pursuant to 15 USC 9058a(c)(2)(A). Condition: One homebuyer payment was allocated to ERA instead of the Homeownership Assistance Fund (HAF). Cause: An error was made by accounting in allocating the award to the ERA program. Effect: Payment was made to an individual that was not eligible under the ERA program. Questioned Costs: None reported as less than $25,000. Context/Sampling: We tested 43 of the 212 SDHDA-awarded payments and the total payments made by SDHDA directly to tenants was $332,487. Repeat Finding from Prior Year(s): No Recommendation: We recommend a high-level review occur for allocation of awards to ensure that awards are allocated to the proper program. We also recommend that the error noted above be corrected and allocated to the proper program. Views of Responsible Officials: Management agrees with the finding.