EIN: 370946301
UEI: TW8QZBNJUBL4
Audited by: Rector, Reeder & Lofton, P.C.
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 20, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by November 20, 2026 (73 days from today).
What is a management decision? →FAC accepted this audit on May 20, 2025 — management decision was due November 20, 2025.
Finding 2024-001 – Special Tests and Provisions, SEMAP reporting – ALN 14.871 – Significant Deficiency & Other Matter Criteria: 24 CFR Part 985.3 states that PHAs “must leave a clear audit trail that can be used to verify that the PHA’s quality control sample was drawn in an unbiased manner.” Condition & cause: The PHA received a score of 100% on its 2024 SEMAP certification. However, the PHA was unable to produce documentation to support the scores that were given. We determined that the PHA has failed to maintain adequate records to provide a clear audit trail in relation to SEMAP. Effect: The SEMAP certification provides HUD with a system to evaluate a PHA’s Section 8 performance. Failure to provide proper supporting documentation can lead to ineffective measurements of Authority performance, as well as its ability to meet the needs of eligible families. Furthermore, misleading SEMAP certifications can disguise a troubled agency who may need HUD intervention. Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification. We also recommend that the PHA establish control systems to ensure SEMAP documentation is adequately gathered to support its submission in the future. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes
Show full finding ▾Hide full finding ▴Finding 2024-001 – Special Tests and Provisions, SEMAP reporting – ALN 14.871 – Significant Deficiency & Other Matter Criteria: 24 CFR Part 985.3 states that PHAs “must leave a clear audit trail that can be used to verify that the PHA’s quality control sample was drawn in an unbiased manner.” Condition & cause: The PHA received a score of 100% on its 2024 SEMAP certification. However, the PHA was unable to produce documentation to support the scores that were given. We determined that the PHA has failed to maintain adequate records to provide a clear audit trail in relation to SEMAP. Effect: The SEMAP certification provides HUD with a system to evaluate a PHA’s Section 8 performance. Failure to provide proper supporting documentation can lead to ineffective measurements of Authority performance, as well as its ability to meet the needs of eligible families. Furthermore, misleading SEMAP certifications can disguise a troubled agency who may need HUD intervention. Recommendation: We recommend that the PHA personnel obtain the appropriate training for SEMAP documentation and certification. We also recommend that the PHA establish control systems to ensure SEMAP documentation is adequately gathered to support its submission in the future. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes
Finding 2024-001 – Special Tests and Provisions, SEMAP reporting – ALN 14.871 – Significant Deficiency & Other Matter Corrective Action Plan: Since the audit, I have completed a SEMAP training course provided by The Nelrod Company. I will draft a binder for each indicator. I will complete the analysis for each indicator and provide verification of all findings. Person Responsible: Annette Carper, Executive Director Anticipated Completion Date: I have completed the SEMAP training. The FYE 2025 SEMAP is due to be submitted by July 31, 2025. I will prepare a binder that will show collected data from August 1, 2024-July 31, 2025.
FAC accepted this audit on April 26, 2024 — management decision was due October 26, 2024.
Finding 2023-001 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 Condition & Cause: We reviewed fifteen (15) files from the Public Housing program. We noted seven (7) files that were not in compliance, or 47% of our sample. Some files were out of compliance in more than one area. Our review revealed the following discrepancies: • One (1) instance of failing to gather proper income verification; • Two (2) instances of failing to properly calculate annual income; • One (1) instance of failing to maintain EIV documentation; • Three (3) instances of failing to maintain birth certificates or social security cards; and • Three (3) instances of failing to maintain Declaration 214s We were able to extrapolate the miscalculations of annual income and found that the potential misstatement of rental revenue was immaterial to the financial statements. We noted that the PHA has experienced turnover in property managers over the past several audits and attribute this to the cause of the discrepancies. Criteria: The Code of Federal Regulations, the Housing Authority Admissions and Continued Occupancy Policy and specific HUD guidelines in documenting and maintaining Low Income Public Housing tenant files. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are any additional misstatements. We also recommend that the Agency determine the best way to monitor compliance with local and federal regulations as it pertains to the upkeep of the tenant files. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes
Show full finding ▾Hide full finding ▴Finding 2023-001 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 Condition & Cause: We reviewed fifteen (15) files from the Public Housing program. We noted seven (7) files that were not in compliance, or 47% of our sample. Some files were out of compliance in more than one area. Our review revealed the following discrepancies: • One (1) instance of failing to gather proper income verification; • Two (2) instances of failing to properly calculate annual income; • One (1) instance of failing to maintain EIV documentation; • Three (3) instances of failing to maintain birth certificates or social security cards; and • Three (3) instances of failing to maintain Declaration 214s We were able to extrapolate the miscalculations of annual income and found that the potential misstatement of rental revenue was immaterial to the financial statements. We noted that the PHA has experienced turnover in property managers over the past several audits and attribute this to the cause of the discrepancies. Criteria: The Code of Federal Regulations, the Housing Authority Admissions and Continued Occupancy Policy and specific HUD guidelines in documenting and maintaining Low Income Public Housing tenant files. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants to determine whether there are any additional misstatements. We also recommend that the Agency determine the best way to monitor compliance with local and federal regulations as it pertains to the upkeep of the tenant files. Questioned Costs: None Repeat Finding: No Was sampling statistically valid? Yes
Corrective Action Plan: I am in receipt of the draft finding letter for the audit that was recently conducted for the Housing Authority of McDonough County. Of the 15 tenant files randomly chosen to review, 7 were not in compliance. Discrepancies include: • Failing to gather proper income verification; • Failing to properly calculate annual income; • Failing to maintain EIV documentation; • Failing to maintain birth certificates or social security cards; and • Failing to maintain Declaration 214s. As I am Executive Director, I am responsible for the Corrective Action Plan that will include rental calculation and HOTMA training for a property managers and me. I am scheduled to attend a rent calc/HOTMA training seminar the week of March 18th. The managers are scheduled to attend a rent calc/HOTMA training seminar the week of April 3rd. In addition, a Quality Assurance program to monitor tenant files will be in effect by April 30, 2024. Anticipated Completion Date: April 30, 2024. Person Responsible: Annette Carper, Executive Director
FAC accepted this audit on June 18, 2023 — management decision was due December 18, 2023.
FAC accepted this audit on June 2, 2022 — management decision was due December 2, 2022.
FAC accepted this audit on July 1, 2021 — management decision was due January 1, 2022.
FAC accepted this audit on April 26, 2020 — management decision was due October 26, 2020.
FAC accepted this audit on April 17, 2019 — management decision was due October 17, 2019.
FAC accepted this audit on March 29, 2018 — management decision was due September 29, 2018.
FAC accepted this audit on June 21, 2017 — management decision was due December 21, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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