Corrective Action Plans

Finding 393551 (2023-004)

Significant Deficiency 2023

NC

Questioned Costs Eligibility Internal Control / Segregation of Duties

Finding: 2023-004 Name of contact person: Corrective action: Proposed completion date: Finding: 2023-005 Name of contact person: Corrective action: Proposed completion date: Shaneall Kollock, Medicaid Program Manager Adult and Family Medicaid Supervisors will train staff on the importance of enterin...

Finding: 2023-004 Name of contact person: Corrective action: Proposed completion date: Finding: 2023-005 Name of contact person: Corrective action: Proposed completion date: Shaneall Kollock, Medicaid Program Manager Adult and Family Medicaid Supervisors will train staff on the importance of entering the correct information, so that the case is processed correctly. Targeted reviews will be completed by both Medicaid Supervisors for 3 months, 2 reviews for each staff member. Section III - Federal Award Findings and Question Costs (continued) Shaneall Kollock, Medicaid Program Manager Adult Medicaid Supervisors will train staff on the importance of entering the correct information, so that the case is processed correctly. Targeted reviews will be completed by both Medicaid Supervisors for 3 months, 2 reviews for each staff member. Training was completed on 12/5/2023 for Adult Medicaid and 12/6/2023 for Family & Children's Medicaid. Training logs are availalbe. Targeted reviews began on 12/1/2023 and will end on 2/28/2024 if improvements are noted and no further errors noted. Review logs will document those targeted reviews. Quality Assurance staff will review findngs, recommendations, and make any adjustments needed to 2nd party forms. Training was completed on 12/5/2023 for Adult Medicaid. Training logs are availalbe. Targeted reviews began on 12/1/2023 and will end on 2/28/2024 if improvements are noted and no further errors noted. Review logs will document those targeted reviews. Quality Assurance staff will review findngs, recommendations, and make any adjustments needed to 2nd party forms.

View Audit 303698

Finding 393550 (2023-003)

Significant Deficiency 2023

Scotland County of North Carolina

NC

Questioned Costs Eligibility Internal Control / Segregation of Duties

Finding: 2023-003 Name of contact person: Corrective action: Proposed completion date: Family Medicaid Supervisor has trained staff on when completing a child support referral is required. Targeted reviews will be completed by the Family Medicaid Supervisor for 3 months, 2 reviews for each staff mem...

Finding: 2023-003 Name of contact person: Corrective action: Proposed completion date: Family Medicaid Supervisor has trained staff on when completing a child support referral is required. Targeted reviews will be completed by the Family Medicaid Supervisor for 3 months, 2 reviews for each staff member. Section III - Federal Award Findings and Question Costs These errors and the finding were reviewed with the Family & Children's Medicaid staff. There will be no training as this requirement is currently not required per Admin Letter 13-23. Shaneall Kollock, Medicaid Program Manager

View Audit 303698

Finding 393494 (2023-007)

Significant Deficiency 2023

City of Elizabeth

NJ

Equipment & Real Property Management Questioned Costs Procurement, Suspension & Debarment § 200.313

The City recognizes the importance of internal controls and plans to enhance procedures to ensure that all capital equipment is captured at time of purchase and receipt and properly entered in the property records. The City has actively reviewed its procedures of purchasing and disposition of fixed ...

The City recognizes the importance of internal controls and plans to enhance procedures to ensure that all capital equipment is captured at time of purchase and receipt and properly entered in the property records. The City has actively reviewed its procedures of purchasing and disposition of fixed assets and will make the necessary adjustments to ensure the fixed assets system remains up the date. Covid interruptions with related illnesses, early retirements, and hiring difficulties all contribute to a negative impact on productivity.

View Audit 303684

Finding 393492 (2023-006)

Material Weakness 2023

City of Elizabeth

NJ

Questioned Costs Cash Management Reporting § 200.303

The City recognizes the importance of internal controls and plans to enhance procedures to ensure that the financial reports include amounts that have been incurred and paid and that they are reconciled to the general ledger in compliance with the requirements of the Uniform Guidance. Covid interrup...

The City recognizes the importance of internal controls and plans to enhance procedures to ensure that the financial reports include amounts that have been incurred and paid and that they are reconciled to the general ledger in compliance with the requirements of the Uniform Guidance. Covid interruptions with related illnesses, early retirements, and hiring difficulties all contribute to a negative impact on productivity.

View Audit 303684

Finding 393490 (2023-005)

Material Weakness 2023

City of Elizabeth

NJ

Allowable Costs / Cost Principles Questioned Costs Matching / Level of Effort / Earmarking § 200.430

The City recognizes the importance of internal controls and plans to enhance procedures to ensure payroll expenditures related to grants are properly captured, documented, and charged to that grant. Covid interruptions with related illnesses, early retirements, and hiring difficulties all contribut...

The City recognizes the importance of internal controls and plans to enhance procedures to ensure payroll expenditures related to grants are properly captured, documented, and charged to that grant. Covid interruptions with related illnesses, early retirements, and hiring difficulties all contribute to a negative impact on productivity.

View Audit 303684 Questioned Costs: $1

Finding 393445 (2023-001)

Significant Deficiency 2023

Community Resource Project, Inc.

CA

Questioned Costs Significant Deficiency Matching / Level of Effort / Earmarking

The agency agrees with the material finding on improper cutoff and depreciation. The agency was following advice from their previous auditors and now learning the correct way to record these items Community Resource Project, Inc. will strive to implement changes immediately. Going forward the agency...

The agency agrees with the material finding on improper cutoff and depreciation. The agency was following advice from their previous auditors and now learning the correct way to record these items Community Resource Project, Inc. will strive to implement changes immediately. Going forward the agency will implement a procedure to properly cutoff end-of-year expenses and have already begun recording depreciation for grant funded vehicles in the correct manner. Person(s) Responsible: Elizabeth Bianchi-Rossi, Finance Director Timing for Implementation: February 2024 – Once the agency learned of these errors, Community Resource Project, Inc. have already implemented a new procedure for the cutoff period at the end of the year and have changed our depreciation method to ensure the full value of the vehicle gets depreciated.

View Audit 303663 Questioned Costs: $1

Finding 393440 (2023-001)

Material Weakness 2023

Curtis V. Cooper Primary Health Care, Inc.

GA

Questioned Costs Cash Management

In Finding 2023-001, a condition was noted that during the year, the Organization made five draws of federal funds that were not disbursed in a timely manner for program expenditures. Management recognizes the importance of the requirements to disburse federal funds in a timely manner. In respons...

In Finding 2023-001, a condition was noted that during the year, the Organization made five draws of federal funds that were not disbursed in a timely manner for program expenditures. Management recognizes the importance of the requirements to disburse federal funds in a timely manner. In response to Finding 2023-001, procedures will be established to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization.

View Audit 303660

Finding 393405 (2023-011)

Significant Deficiency 2023

Northampton County

NC

Questioned Costs Eligibility Significant Deficiency

Finding 2023-011 Inaccurate Resources Entry Name of contact: Lisa Broady, Adult Medicaid Supervisor Corrective Action: Proposed Completion Date: Corrective Actions for finding 2023-008, 2023-009, 2023-010, and 2023-011 also apply to State Award findings. Section IV - State Award Findings and Questio...

Finding 2023-011 Inaccurate Resources Entry Name of contact: Lisa Broady, Adult Medicaid Supervisor Corrective Action: Proposed Completion Date: Corrective Actions for finding 2023-008, 2023-009, 2023-010, and 2023-011 also apply to State Award findings. Section IV - State Award Findings and Question Costs Unit meetings will be held during the week of March 4, 2024 with implementation effective immediately. Section III - Federal Award Findings and Question Costs (continued) Adult Medicaid supervisors will be meeting with staff to ensure that all resources have been updated, entered and documented correctly in NCFast and case files and NCFast are matching. A unit meeting will be scheduled to be held during the week of March 4, 2024 with implementation effective immediately.

View Audit 303645

Finding 393404 (2023-010)

Significant Deficiency 2023

Northampton County

NC

Questioned Costs Eligibility Significant Deficiency

Finding 2023-008 IV-D Cooperation with Child Support Name of contact: Felicia Bullock, Family and Children’s Medicaid Supervisor Corrective Action: Proposed Completion Date: Finding 2023-009 Inaccurate Information Entry Name of contact: Corrective Action: Proposed Completion Date: Finding 2023-010 I...

Finding 2023-008 IV-D Cooperation with Child Support Name of contact: Felicia Bullock, Family and Children’s Medicaid Supervisor Corrective Action: Proposed Completion Date: Finding 2023-009 Inaccurate Information Entry Name of contact: Corrective Action: Proposed Completion Date: Finding 2023-010 Inadequate Request for Information Name of contact: Corrective Action: Family and Children's Medicaid with staff on making sure TWN and OVS is ran on every application and recert as well as paying attention to other information received. Adult Medicaid supervisors will meet with staff to ensure that the TWN is being run in NCFast for all applications/recerts and that all case files include online verifications and case documentation of all resources countable and non-countable for vehicles and property. Section III - Federal Award Findings and Question Costs Family and Children's Medicaid supervisors will be meeting with staff to ensure they are receiving correct information, counting and entering correct information into NCF. Supervisor will randomly check at least 10 cases a month to assure accuracy. Adult Medicaid supervisors will be meeting with staff to ensure that they are imputing and listing income correctly in NCFast on all applications/recerts. Also, will ensure that prior to case terminations, clients have been evaluated properly for all AMA programs and proper procedures have been followed before terminating a case. Unit meetings will be held during the week of March 4, 2024 with implementation effective immediately. Supervisor will continue to review 10 cases each month to assure correct information has been keyed and correct procedures has been done prior to case termination. Family and Children's Medicaid supervisors will meet with staff on IV-D referrals and discuss when to key them. A unit meeting with staff during the week of March 4, 2024.

View Audit 303645

Finding 393403 (2023-009)

Significant Deficiency 2023

Northampton County

NC

Questioned Costs Eligibility Significant Deficiency

Finding 2023-008 IV-D Cooperation with Child Support Name of contact: Felicia Bullock, Family and Children’s Medicaid Supervisor Corrective Action: Proposed Completion Date: Finding 2023-009 Inaccurate Information Entry Name of contact: Corrective Action: Proposed Completion Date: Finding 2023-010 I...

Finding 2023-008 IV-D Cooperation with Child Support Name of contact: Felicia Bullock, Family and Children’s Medicaid Supervisor Corrective Action: Proposed Completion Date: Finding 2023-009 Inaccurate Information Entry Name of contact: Corrective Action: Proposed Completion Date: Finding 2023-010 Inadequate Request for Information Name of contact: Corrective Action: Family and Children's Medicaid with staff on making sure TWN and OVS is ran on every application and recert as well as paying attention to other information received. Adult Medicaid supervisors will meet with staff to ensure that the TWN is being run in NCFast for all applications/recerts and that all case files include online verifications and case documentation of all resources countable and non-countable for vehicles and property. Section III - Federal Award Findings and Question Costs Family and Children's Medicaid supervisors will be meeting with staff to ensure they are receiving correct information, counting and entering correct information into NCF. Supervisor will randomly check at least 10 cases a month to assure accuracy. Adult Medicaid supervisors will be meeting with staff to ensure that they are imputing and listing income correctly in NCFast on all applications/recerts. Also, will ensure that prior to case terminations, clients have been evaluated properly for all AMA programs and proper procedures have been followed before terminating a case. Unit meetings will be held during the week of March 4, 2024 with implementation effective immediately. Supervisor will continue to review 10 cases each month to assure correct information has been keyed and correct procedures has been done prior to case termination. Family and Children's Medicaid supervisors will meet with staff on IV-D referrals and discuss when to key them. A unit meeting with staff during the week of March 4, 2024.

View Audit 303645

Finding 393376 (2023-002)

Material Weakness 2023

Iron County Housing Commission

MI

Questioned Costs Special Tests & Provisions HUD Housing Programs

Action Taken: Management has updated its utility allowance effective beginning in November 2023. Anticipated Completion Date of Action: November 2023

View Audit 303632

Finding 393375 (2023-001)

Material Weakness 2023

Iron County Housing Commission

MI

Questioned Costs Special Tests & Provisions HUD Housing Programs

Action Taken: Management is still in the process of implementing policies and procedures to ensure all inspections are performed in a timely manner and all re-inspections are performed within the required timeframe. Anticipated Completion Date of Action: Ongoing

View Audit 303632

Finding 393374 (2023-001)

Significant Deficiency 2023

Community Health & Wellness Partners of Logan County

OH

Questioned Costs Subrecipient Monitoring Reporting

Federal program and specific federal award U.S. Department of Health and Human Services (HHS) 93.498 Provider Relief Fund and American Rescue Plan Rural Distribution Specific requirement Special Reporting of Provider Relief Funds (PRF) Reporting Portal Condition Under the terms and conditions of t...

Federal program and specific federal award U.S. Department of Health and Human Services (HHS) 93.498 Provider Relief Fund and American Rescue Plan Rural Distribution Specific requirement Special Reporting of Provider Relief Funds (PRF) Reporting Portal Condition Under the terms and conditions of the Provider Relief Funds “option 2” for calculation of lost revenue using budgeted revenue compared to actual revenue, the amounts used for the budget must be based on a board approved budget prior to March 27, 2020, which covers the period of availability. The Organization utilized a budget for the period November 1, 2019, through October 31, 2020 that was board approved prior to March 27, 2020; however, the budget periods of November 1, 2020 through October 31, 2021 and November 1, 2021 through October 31, 2022 were not board approved prior to March 27, 2020. Accordingly, option 3 should have been indicated in the PRF reporting portal. In addition, it was noted that there was not a separate review of the information submitted to the reporting portal. Cause Due to the complexity of the PRF Reporting Requirements, the Organization made an error in selecting option 2 as the reporting method and there was not a second review of the information reported in the PRF reporting portal before submission. Effect or potential effect Option 2 verses Option 3 was selected on PRF reporting portal. Questioned costs None Repeat finding No Recommendation We recommend that management further review terms and conditions of grant reporting requirements and include others within the Organization to provide monitoring and oversight of reporting submissions. Corrective action We agreed with the above comment and will include the involvement of the CEO or a Finance Committee member to review reporting submissions for all grant awards. Due to the unusual nature of the PRF reporting, we believe this issue of noncompliance is isolated. Questions regarding this corrective action plan should be addressed to Tara Bair, President/CEO at (937)599-1411.

View Audit 303631

Finding 393370 (2023-004)

Significant Deficiency 2023

City of Fosston

MN

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Contact Person - Cassandra Heide, City Administrator Corrective Action Plan - Will establish a procedure to review certified payrolls. Completion Date - Immediately

View Audit 303628

Finding 393367 (2023-003)

Significant Deficiency 2023

City of Fosston

MN

Questioned Costs Internal Control / Segregation of Duties Special Tests & Provisions

Contact Person - Cassandra Heide, City Administrator Corrective Action Plan - Will establish a procedure to ensure all revenue is properly accounted for. Completion Date - Immediately

View Audit 303628

Finding 393364 (2023-010)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

HUD Housing Programs Questioned Costs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the authority review the equity roll forward of programs to identify and correct errors in the correct reporting period. Explanation of disagreement with audit finding: There is no disagreement with the...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the authority review the equity roll forward of programs to identify and correct errors in the correct reporting period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Processes are being updated to include a monthly reconciliation of program equity to be performed by Finance staff in cooperation with Program staff. Finance staff are undergoing substantial training to improve both programmatic understanding and financial systems knowledge. Name(s) of the contact person(s) responsible for corrective action: Ellen Eudy, Deputy Director, Financial Operations and John Morrison, Controller Planned completion date for corrective action plan: Training in progress with reconciliation process to be completed by June 30, 2024.

View Audit 303627 Questioned Costs: $1

Finding 393361 (2023-009)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority implements controls in order to ensure reporting requirements are met in accordance with applicable grant agreements and regulations. Explanation of disagreement with audit finding: T...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority implements controls in order to ensure reporting requirements are met in accordance with applicable grant agreements and regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Action planned/taken in response to finding: The Director of HCVP Operations and the Director of HCVP Administration will each independently review their portions of the SEMAP certifications that apply to their business units and sign off. Once complete, all SEMAP certifications for the HCVP will be forwarded to the Director of Rental Assistance and Compliance for final review/validation. The Director of Rental Assistance and Compliance will be responsible for directly submitting validated SEMAP data to HUD. Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations, Yolanda Dennison, HCVP Director of Administration, and Lisa T. Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Effective with fiscal year 2024 SEMAP certification.

View Audit 303627

Finding 393358 (2023-008)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Eligibility HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Current processes in place require collection and review of documentation by individual HPC assigned to a particular file. Upon transfer to the associated administrative team member, a second review is to be conducted to verify all required documentation is present. Any omissions require the HPC to reach out and supply mission documentation before action can be processed. We also secured a contract with The Work Number solution to assist with third party income verifications. Name(s) of the contact person(s) responsible for corrective action: Entire HCVP team and management. Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 303627 Questioned Costs: $1

Finding 393355 (2023-007)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Special Tests & Provisions HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waive...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Housing Voucher Cluster funds are held by the Treasurer for the State of South Carolina. The depository agreements in place are between the depository institution and the state Treasurer. SC Housing submitted a waiver request to the local HUD field office on March 29, 2023. We followed up on the request most recently on January 24, 2024 and to date, no response has been received. In the meantime, SC Housing is continuing to work with the State Treasurer’s Office to identify a solution that would allow SC Housing to enter into a general depository agreement (GDA) that would provide third party rights to HUD. Modifications have been made to the state financial accounting sytems to track the funds in question separately, but we are trying to determine how, and even if, the funds can be housed in a separate bank account, while still adhering to state regulation. Name(s) of the contact person(s) responsible for corrective action: Ellen Eudy, Deputy Director, Financial Operations and Lisa Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Waiver request submitted to HUD local field office on March 29, 2023. Alternative solution is in discussion with State Treasurer’s Office .

View Audit 303627

Finding 393354 (2023-006)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Material Weakness Period of Performance § 200.344

COVID-19 Emergency Rental Assistance – Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements an internal control over compliance to evidence the expenses are approved to be charged to the grant. Explanation of disagreement with audit finding: There is no disagreeme...

COVID-19 Emergency Rental Assistance – Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements an internal control over compliance to evidence the expenses are approved to be charged to the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Monthly reports are provided for Cost Distribution by Deputy Director of Financial Operations to Deputy Director Programs for review of appropriate charging. Corrections are provided back to Finance and made in the financial system. Name(s) of the contact person(s) responsible for corrective action: Ellen Eudy, Deputy Director, Financial Operations and Marni Holloway, Deputy Director, Programs Planned completion date for corrective action plan: June 30, 2024

View Audit 303627

Finding 393353 (2023-005)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Material Weakness Reporting

COVID-19 Emergency Rental Assistance – Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation o...

COVID-19 Emergency Rental Assistance – Assistance Listing Number 21.023 Recommendation: We recommend the Authority implements controls to ensure that documentation is maintained to support amounts reported. Review and approval of the amounts reported to Treasury should be documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: SC Housing is in the process of data transfer and will have direct access to review data and provide reports supporting entry in to the Treasury Portal. Name(s) of the contact person(s) responsible for corrective action: Gina Connelly, Emergency Housing Manager (with GuideHouse), Marni Holloway, Deputy Director of Programs Planned completion date for corrective action plan: Implementing and will be ongoing through the sunset dates of each program.

View Audit 303627

Finding 393350 (2023-004)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

HUD Housing Programs Questioned Costs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Explanation of disagreement with audit finding: There is no disagreement with ...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: All initial lease-ups, other change of units, and rent increases are reviewed by the Director of HVCP Operations for confirm that rent reasonableness was performed prior to the effective date of the application action. Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations. Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 303627

Finding 393347 (2023-003)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Special Tests & Provisions HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements ...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Monthly Failed Item Report Review: • Director of Operations is generating and reviewing a monthly failed HQS inspection report o Have units been re-inspected? o If not, why? o Prompt abatement action immediately, if necessary ▪ Management will issue written authorization to abate within the HUD required timeframe Reinspection letter o Staff required to monitor 24-hour correction time frame and move to abate subsidy for those that remain non-compliance without reasonable justification/documentation of repair ▪ Requests for extensions on 24-hour cures will not be granted o Deficiencies which provide a 30-day cure period are monitored and re-inspected within the allowed 30-day window, unless satisfactory proof of cure has been submitted prior to this time ▪ Reasonable written requests for extensions may be granted if it is determined that the owner has made a good faith effort to remedy identified issues but are unable to meet the 30-day time frame due to reasons beyond their control o Will be reviewed by senior management to determine abatements required Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations and Lisa T. Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 303627 Questioned Costs: $1

Finding 393344 (2023-002)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Special Tests & Provisions Material Weakness

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. A...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that required HQS and QC inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Periodic HQS Inspections: Procedures are in place that require staff to generate a listing of all properties requiring inspection between ninety to one hundred and twenty days prior to the scheduled inspection date. Each unit under HAP contract must be inspected prior to execution of the initial lease and prior to execution of the HAPcontract and no less than biennially per our HUD-approved Administrative Plan (not annually) thereafter to confirm the unit continues to meet minimum HUD requirements. This report is generated a minimum of once monthly to assist with scheduling. The report and scheduling of inspections is monitored by the Director of Housing Choice Voucher Operations. Procedures have been updated to require that the Director of Rental Assistance and Compliance review all inspections completed after the date due and the accompanying explanation for the delay. Acceptable reasons for delay should be validated as beyond Authority control and documented accordingly. Management will track and analyze the data generated from the late inspections to identify patterns and implement additional corrective actions as warranted. QC Inspections: As of March 28, 2024, all 2024 fiscal year QC inspections have been completed. Ongoing, all required inspections will be completed no later than the end of each fiscal year. A status report documenting all efforts and results will be submitted monthly to the Director of Rental Assistance and Compliance. Management will track and analyze the data generated from these inspections to assure all program inspections are consistent and compliant and that any patterns identified are effectively addressed with additional training, etc. as warranted. Note: As of March 26, 2023, the HCVP is undergoing a minor departmental restructure, final effective date is undetermined at this time however, all parties are actively engaged in implementing the approved changes. One of the modifications includes the designation of one particular senior inspector as the official QC inspection team lead. The designation of this individual as the project lead will assure that QC inspections will be completed timely and in compliance with regulatory requirements. Name(s) of the contact person(s) responsible for corrective action: Wallace Preston, Training/HQS QC Manager, Lenzy Morris, HCVP Director of Operations and Lisa T. Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: On track to demonstrate compliance with fiscal year ending June 30, 2024 and each fiscal year thereafter.

View Audit 303627

Finding 393338 (2023-001)

Significant Deficiency 2023

Winslow Gardens

RI

Questioned Costs HUD Housing Programs Significant Deficiency

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: Finding 2023-001 The Organization does not have the required insurance coverage determined by HUD and exposes themselves to potential liability. Program Operating Assistance for Troubled Multifamily Housing Projects - 14.164 Description of Finding Tw...

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: Finding 2023-001 The Organization does not have the required insurance coverage determined by HUD and exposes themselves to potential liability. Program Operating Assistance for Troubled Multifamily Housing Projects - 14.164 Description of Finding Two months of gross potential receipts was in excess of the Fidelity Bond maintained by the Organization. Statement of Concurrence or Non-Concurrence Management concurs with this finding. Corrective Action Effective February 5, 2024, the Organization had increased their Fidelity Bond coverage for the 2024 fiscal year. Name of Contact Person Joseph Durand Projected Completion Date February 5, 2024

View Audit 303617

Corrective Action Plans

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