Finding 15931 (2022-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Authority failed to keep necessary documentation for reported amounts related to the COVID-19 Emergency Rental Assistance program.
  • Impacted Requirements: Monthly and quarterly reports must be submitted with supporting documentation as per Treasury guidance.
  • Recommended Follow-Up: Implement controls to ensure documentation is maintained and establish a process for review and approval of reported amounts.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Emergency Rental Assistance (ERA) Assistance Listing Number: 21.023 Federal Award Identification Number and Year: ERAE0406 and ERAE0407 - 2022 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Monthly and quarterly reports are required to be submitted in accordance with Treasury guidance beginning in the first quarter of 2021 through September of 2022 for ERA1 and through September of 2025 for ERA 2. The monthly and quarterly reports are required to be submitted by the 15th of the following month. Condition: The Authority did not maintain documentation to support reported amounts. Questioned costs: Unable to determine. Context: A sample of 7 reports were unsupported and did not include documentation of review and approval. The sample was statistically valid. Cause: Documentation was not maintained that supported the amounts reported. Effect: The Authority is not in compliance with ERA reporting requirements. Repeat Finding: No. 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. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

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 taken in response to finding: SC Housing has expended the majority of the COVID-19 Emergency Rental Assistance funds, and the program will be ending in the coming months. The close-out plan includes the transfer and archive of all data from the third-party vendor working to implement the program. A protocol was implemented with the closeout report to Treasury for ERA1 funds in January, 2023, to retain all documentation supporting the report, and all reports moving forward, in SC Housing program files. Review of future reports by the Division Director prior to submission to Treasury will be added to the reporting process. Names of the contact persons responsible for corrective action: Amanda Colbert, Marni Holloway Planned completion date for corrective action plan: partially implemented, review will begin with next report due in April, 2023.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 15915 2022-001
    Material Weakness
  • 15916 2022-002
    Material Weakness
  • 15917 2022-003
    Significant Deficiency
  • 15918 2022-004
    Significant Deficiency
  • 15919 2022-001
    Material Weakness
  • 15920 2022-002
    Material Weakness
  • 15921 2022-003
    Significant Deficiency
  • 15922 2022-004
    Significant Deficiency
  • 15923 2022-001
    Material Weakness
  • 15924 2022-002
    Material Weakness
  • 15925 2022-003
    Significant Deficiency
  • 15926 2022-004
    Significant Deficiency
  • 15927 2022-001
    Material Weakness
  • 15928 2022-002
    Material Weakness
  • 15929 2022-003
    Significant Deficiency
  • 15930 2022-004
    Significant Deficiency
  • 592357 2022-001
    Material Weakness
  • 592358 2022-002
    Material Weakness
  • 592359 2022-003
    Significant Deficiency
  • 592360 2022-004
    Significant Deficiency
  • 592361 2022-001
    Material Weakness
  • 592362 2022-002
    Material Weakness
  • 592363 2022-003
    Significant Deficiency
  • 592364 2022-004
    Significant Deficiency
  • 592365 2022-001
    Material Weakness
  • 592366 2022-002
    Material Weakness
  • 592367 2022-003
    Significant Deficiency
  • 592368 2022-004
    Significant Deficiency
  • 592369 2022-001
    Material Weakness
  • 592370 2022-002
    Material Weakness
  • 592371 2022-003
    Significant Deficiency
  • 592372 2022-004
    Significant Deficiency
  • 592373 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 Emergency Rental Assistance $230.71M
14.195 Section 8 Housing Assistance Payments Program $149.95M
14.239 Home Investment Partnerships Program $87.49M
21.026 Covid-19 Homeowner Assistance Fund $14.53M
14.871 Section 8 Housing Choice Vouchers $14.48M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $9.30M
14.275 National Housing Trust Fund $1.69M
14.871 Section 8 Housing Choice Vouchers- Emergency Housing Vouchers $564,015
14.871 Section 8 Housing Choice Vouchers - Cares $513,332
14.879 Mainstream Vouchers $124,031
14.228 Hera Neighborhood Stabilization Program $3,867