EIN: 576006355
UEI: XVH6W5AW6AB3
Audited by: Henderson & Pilleteri, LLC
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 18, 2025. 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 June 18, 2026 (77 days ago).
What is a management decision? →2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely by prior management which caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority’s prior management incurred unallowable cost for the inter-program balances between the Section 8 HAP (“Multi-family”) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $118,729, resulting in unallowable costs created over years due to prior management’s lack of internal controls. Context: The Authority’s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management’s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $53,218 from the N/R S/R Section 8 program and $65,511 from the Housing Choice Voucher program resulting in unallowable costs created over years due to prior management’s lack of internal controls. Auditor’s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program that was accumulated from the prior management. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
Show full finding ▾Hide full finding ▴2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely by prior management which caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority’s prior management incurred unallowable cost for the inter-program balances between the Section 8 HAP (“Multi-family”) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $118,729, resulting in unallowable costs created over years due to prior management’s lack of internal controls. Context: The Authority’s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management’s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $53,218 from the N/R S/R Section 8 program and $65,511 from the Housing Choice Voucher program resulting in unallowable costs created over years due to prior management’s lack of internal controls. Auditor’s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program that was accumulated from the prior management. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2026
2024-001
FAC accepted this audit on February 4, 2025 — management decision was due August 4, 2025.
2024-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely by prior management which caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority’s prior management incurred unallowable cost for the inter-program balances between the Section 8 HAP (“Multi-family”) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $127,254, resulting in unallowable costs created over years due to prior management’s lack of internal controls. Context: The Authority’s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management’s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $19,593 from the N/R S/R Section 8 program and $107,661 from the Housing Choice Voucher program resulting in unallowable costs created over years due to prior management’s lack of internal controls. Auditor’s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program that was accumulated from the prior management. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
Show full finding ▾Hide full finding ▴2024-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely by prior management which caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority’s prior management incurred unallowable cost for the inter-program balances between the Section 8 HAP (“Multi-family”) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $127,254, resulting in unallowable costs created over years due to prior management’s lack of internal controls. Context: The Authority’s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management’s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $19,593 from the N/R S/R Section 8 program and $107,661 from the Housing Choice Voucher program resulting in unallowable costs created over years due to prior management’s lack of internal controls. Auditor’s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program that was accumulated from the prior management. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
2024-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2025
2023-001
FAC accepted this audit on March 27, 2024 — management decision was due September 27, 2024.
2023-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely by prior management which caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority’s prior management incurred unallowable cost for the inter-program balances between the Section 8 HAP (“Multi-family”) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $203,026, resulting in unallowable costs created over years due to prior management’s lack of internal controls. Context: The Authority’s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management’s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $20,956 from the N/R S/R Section 8 program and $182,070 from the Housing Choice Voucher program resulting in unallowable costs created over years due to prior management’s lack of internal controls. Auditor’s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program that was accumulated from the prior management. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
Show full finding ▾Hide full finding ▴2023-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely by prior management which caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority’s prior management incurred unallowable cost for the inter-program balances between the Section 8 HAP (“Multi-family”) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $203,026, resulting in unallowable costs created over years due to prior management’s lack of internal controls. Context: The Authority’s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management’s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $20,956 from the N/R S/R Section 8 program and $182,070 from the Housing Choice Voucher program resulting in unallowable costs created over years due to prior management’s lack of internal controls. Auditor’s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program that was accumulated from the prior management. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
2023-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2024
2022-001
FAC accepted this audit on March 28, 2023 — management decision was due September 28, 2023.
2022-001 ALN 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely and has caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the Section 8 HAP (?Multi-family?) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $263,754, resulting in unallowable costs created over years. Context: The Authority?s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management?s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $85,804 from the N/R S/R Section 8 program and $177,950 from the Housing Choice Voucher program resulting in unallowable costs created over years. Auditor?s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
Show full finding ▾Hide full finding ▴2022-001 ALN 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely and has caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the Section 8 HAP (?Multi-family?) program, N/C S/R Section 8 program and Housing Choice Voucher program due to poor cash management controls. Amount of Questioned Costs: $263,754, resulting in unallowable costs created over years. Context: The Authority?s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, or Housing Choice Voucher program could be unallowable and/or unreasonable. Current management has made significant strides to improve the financial status and appropriately addressed the financial status of the Housing Authority. Thus, the amount of questioned costs has significantly decreased from prior years. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program and the Housing Choice Voucher program were not reimbursed properly or timely and continued to accumulate over the years due to prior management?s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $85,804 from the N/R S/R Section 8 program and $177,950 from the Housing Choice Voucher program resulting in unallowable costs created over years. Auditor?s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program or Housing Choice Voucher program to pay down its liability to the Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
2022-001 ALN 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2023
2021-001
FAC accepted this audit on March 30, 2022 — management decision was due September 30, 2022.
2021-001 CFDA 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely and has caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the Section 8 HAP (?Multi-family?) program, N/C S/R Section 8 program, Housing Choice Voucher program and Business Activities? programs due to poor cash management controls. Amount of Questioned Costs: $407,434, resulting in unallowable costs created over years. Context: The Authority?s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, Housing Choice Voucher program, or Business Activities? programs could be unallowable and/or unreasonable. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program, the Housing Choice Voucher program, and to the Business Activities? program were not reimbursed properly or timely and continued to accumulate over the years due to prior management?s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $174,810 from the N/R S/R Section 8 program, $205,464 from the Housing Choice Voucher program, and $27,160 from the Business Activity program, resulting in unallowable costs created over years. Auditor?s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program, Housing Choice Voucher program, and Business Activities? program to pay down its liability to the Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
Show full finding ▾Hide full finding ▴2021-001 CFDA 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely and has caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the Section 8 HAP (?Multi-family?) program, N/C S/R Section 8 program, Housing Choice Voucher program and Business Activities? programs due to poor cash management controls. Amount of Questioned Costs: $407,434, resulting in unallowable costs created over years. Context: The Authority?s prior management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, Housing Choice Voucher program, or Business Activities? programs could be unallowable and/or unreasonable. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program, the Housing Choice Voucher program, and to the Business Activities? program were not reimbursed properly or timely and continued to accumulate over the years due to prior management?s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $174,810 from the N/R S/R Section 8 program, $205,464 from the Housing Choice Voucher program, and $27,160 from the Business Activity program, resulting in unallowable costs created over years. Auditor?s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program, Housing Choice Voucher program, and Business Activities? program to pay down its liability to the Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement.
2021-001 CFDA 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2022
2020-001
FAC accepted this audit on May 4, 2021 — management decision was due November 4, 2021.
2020-001 CFDA 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely and has caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the Section 8 HAP (?Multi-family?) program, N/C S/R Section 8 program, Housing Choice Voucher program and Business Activities? programs due to poor cash management controls. Amount of Questioned Costs: $546,163, resulting in unallowable costs created over years. Context: The Authority?s management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, Housing Choice Voucher program, or Business Activities? programs could be unallowable and/or unreasonable. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program, the Housing Choice Voucher program and to the Business Activities? program were not reimbursed properly or timely and continued to accumulate over the years due to prior management?s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $231,998 from the N/C S/R Section 8 program, $41,143 from the Housing Choice Voucher program and $55,345 from the Business Activities? program, resulting in unallowable costs created over years. The Multi-family (previously Low Rent Public Housing) program is due $217,677 from the Housing Choice Voucher program that evidenced by a formal agreement is included as notes payable and notes receivable on the current year financial statements. Auditor?s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program, Housing Choice Voucher program and Business Activities? program to pay down its liability to the Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs.
Show full finding ▾Hide full finding ▴2020-001 CFDA 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed using inter-program accounts. Reimbursement between programs was not made timely and has caused an increase in inter-program receivables and payables over time. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the Section 8 HAP (?Multi-family?) program, N/C S/R Section 8 program, Housing Choice Voucher program and Business Activities? programs due to poor cash management controls. Amount of Questioned Costs: $546,163, resulting in unallowable costs created over years. Context: The Authority?s management failed to ensure inter-program advances were reimbursed properly and timely. Costs assigned to the Multi-family program, N/C S/R Section 8 program, Housing Choice Voucher program, or Business Activities? programs could be unallowable and/or unreasonable. Cause: Inter-program cash advances from Multi-family Housing to the N/C S/R Section 8 program, the Housing Choice Voucher program and to the Business Activities? program were not reimbursed properly or timely and continued to accumulate over the years due to prior management?s lack of internal controls. Effect: The Multi-family (post conversion to RAD) program is due $231,998 from the N/C S/R Section 8 program, $41,143 from the Housing Choice Voucher program and $55,345 from the Business Activities? program, resulting in unallowable costs created over years. The Multi-family (previously Low Rent Public Housing) program is due $217,677 from the Housing Choice Voucher program that evidenced by a formal agreement is included as notes payable and notes receivable on the current year financial statements. Auditor?s Recommendation: The Housing Authority must continue reconciling accounts for the N/C S/R Section 8 program, Housing Choice Voucher program and Business Activities? program to pay down its liability to the Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs.
2020-001 CFDA 14.871 ? Housing Voucher Cluster ? Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2021
2019-001
FAC accepted this audit on March 29, 2020 — management decision was due September 29, 2020.
2019-001 CFDA 14.182 - N/C S/R Section 8 Programs ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed through the use of inter-program accounts. Reimbursement between programs was not made timely. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the N/R S/R Section 8 program and Housing Choice Voucher program and Business Activity programs due to poor cash management controls. Amount of Questioned Costs: $322,004, resulting in unallowable costs created over years beginning pre-RAD Context: The Authority?s prior management failed to ensure inter-program advances were reimbursed properly. Costs assigned to the Multi-family (previously Low Rent Public Housing) program, Housing Choice Voucher program, or Business Activity programs could be unallowable and/or unreasonable. Cause: Inter-program cash advances from Multi-family Housing (previously Low Rent Public Housing) to the Housing Choice Voucher program and to the Business Activity program were not reimbursed properly and continued to accumulate over the years due to prior management?s lack of controls. Effect: The Multi-family (previously Low Rent Public Housing) program is due $227,000 from the Housing Choice Voucher program and $95,004 from the Business Activity program, resulting in unallowable costs created over years. Auditor?s Recommendation: The Housing Authority must continue to follow the informal repayment agreement the Board placed for Housing Choice Voucher program and Business Activity program to pay down its liability to Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. The balance is $139,452 less than the balance at June 30, 2018.
Show full finding ▾Hide full finding ▴2019-001 CFDA 14.182 - N/C S/R Section 8 Programs ? Activities Allowed or Unallowed Condition and Criteria: The Housing Authority of Lake City operates several distinct programs. Allocated expenses are paid from the multi-family housing fund and reimbursed through the use of inter-program accounts. Reimbursement between programs was not made timely. Cash management is the process of managing the Housing Authority (PHA) to optimize its use of funds. This process involves the timing of receipts and disbursements to assure the availability of funds to meet expenditures and to maximize the yield from the investment of temporary surplus funds. The Authority incurred unallowable cost for the inter-program balances between the N/R S/R Section 8 program and Housing Choice Voucher program and Business Activity programs due to poor cash management controls. Amount of Questioned Costs: $322,004, resulting in unallowable costs created over years beginning pre-RAD Context: The Authority?s prior management failed to ensure inter-program advances were reimbursed properly. Costs assigned to the Multi-family (previously Low Rent Public Housing) program, Housing Choice Voucher program, or Business Activity programs could be unallowable and/or unreasonable. Cause: Inter-program cash advances from Multi-family Housing (previously Low Rent Public Housing) to the Housing Choice Voucher program and to the Business Activity program were not reimbursed properly and continued to accumulate over the years due to prior management?s lack of controls. Effect: The Multi-family (previously Low Rent Public Housing) program is due $227,000 from the Housing Choice Voucher program and $95,004 from the Business Activity program, resulting in unallowable costs created over years. Auditor?s Recommendation: The Housing Authority must continue to follow the informal repayment agreement the Board placed for Housing Choice Voucher program and Business Activity program to pay down its liability to Multi-family program. Timely repayment of cash advances from one program to the other when costs are allocated between programs. Strict budgeting procedures must be set in place to allow the programs to replenish reserves. Grantee Response: Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. The balance is $139,452 less than the balance at June 30, 2018.
2019-001 CFDA 14.182 - N/C S/R Section 8 Programs ? Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. The balance is $139,452 less than the balance at June 30, 2018. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2020
2018-001
FAC accepted this audit on March 26, 2019 — management decision was due September 26, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on March 28, 2018 — management decision was due September 28, 2018.
FAC accepted this audit on March 29, 2017 — management decision was due September 29, 2017.
GSA_MIGRATION
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GSA_MIGRATION
2015-001
GSA_MIGRATION
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GSA_MIGRATION
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