Finding 1164983 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-16
Audit: 375029
Organization: Lexington Housing Authority (NC)

AI Summary

  • Core Issue: The PHA submitted the SEMAP certification on time, but it lacked the required board resolution approval.
  • Impacted Requirements: The PHA did not comply with federal guidelines that mandate board approval within 60 days after the fiscal year ends.
  • Recommended Follow-up: Ensure the board approves the SEMAP via resolution and implement the Corrective Action Plan to prevent future issues.

Finding Text

24 CFR Part 985 Subpart B—Program Operation § 985.101—SEMAP certification. An PHA must submit the HUD‐required SEMAP certification form within 60 calendar days after the end of its fiscal year. The certification must be approved by PHA board resolution and signed by the PHA executive director. If the PHA is a unit of local government or a state, a resolution approving the certification is not required, and the certification must be executed by the Section 8 program director. During the audit, it was noted that the SEMAP was submitted on time, but the PHA board did not approve the SEMAP via board resolution. The PHA board did not approve the SEMAP via board resolution within 60 calendar days after the end of the fiscal year end. The PHA mistakenly missed approving the SEMAP. The Authority did not follow the federal guidelines relating to SEMAP certification. The SEMAP was prepared by the Authority, so just have the board approve the SEMAP via Board Resolution. None Management agrees and has a Corrective Action Plan identifying steps to resolve this finding.

Corrective Action Plan

The PHA accepts the recommendations from the audit report, to ensure all future SEM<AP submissions are reviewed and approved by the Board of Commissioners within 60 dayts of the fiscal year end

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $5.13M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $137,367
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $48,893