FAC Explorer

Finding 403173 (2023-001)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2023
Accepted
2024-06-27
Audit: 310316
Organization: The Housing Authority of Cheraw (SC)
Auditor: Scmo

AI Summary

  • Core Issue: The Housing Authority obligated $2.8 million in Emergency Safety and Security grant funds but only spent 50% within the required 24 months.
  • Impacted Requirements: Funds must be obligated within 1 year and fully expended within 2 years as per 24 C.F.R § 905.204 and PIH notice 2023-10.
  • Recommended Follow-Up: Monitor future contracts closely to ensure compliance with HUD guidelines and prevent returning unspent funds.

Finding Text

Criteria: Emergency Safety and Security grants should be managed in the same manner as grants provided by the Department for unforeseeable or unpreventable emergenciesunder 24 C.F.R § 905.204. Therefore, PHAs have 1 year to obligate and 2 years to expend Emergency Safety and Security grant funds. Additional guidance from PIH notice 2023-10 Condition: The Housing Authority obligated the funds within time frame above however only spent approximately 50% of the obligated funds with the 24 months. Context: The 2021 Emergancy CFP grant of approximately $2.8 million was obligated within 12 months however only approximately $1.4 million was expended withing the 24 month period resulting in$1.4 million being returned to HUD. Cause: Due to changes in staff, disagreements with contractors the obligated funds were not spent in time to meet the HUD compliance requirements. Effect: The Housing Authority was required to return the unspent funds after 24 months . Recommendations: Furture contracts should be monitored closely to ensure compliance with HUD guidelines to avoid returning significant portion of grants to HUD.

Corrective Action Plan

Corrective Action Plan: During the past year, the Housing Authority experienced a high turnover rate amongst the senior level executive staff. Due to the numerous vacancies and changes in executive level responsibilities, the disbursement end date August 2, 2023 regarding the Cheraw Sewer Grant was overlooked. Because the deadline for expanding grant funds expired HUD recalled the remaining funds that were in the Sewer Grant account. All senior level leadership positions have since been filled, and the responsibility for monitoring all grant fund deadlines have been assigned to the appropriate staff. The monitoring of grant deadlines is ongoing. Anticipated Completion Date: The Housing Authority was required to return the unspent funds after 24 months. Funds unavailable for use.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 979615 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $3.39M
10.427 Rural Rental Assistance Payments $160,221
14.870 Resident Opportunity and Supportive Services - Service Coordinators $55,464