MISSISSIPPI HOME CORPORATIONState Government

COVID-19 – Homeowner Assistance Fund Assistance Listing Number 21.026 U.S. Department of Treasury Criteria or Specific Requirement – Reporting – Quarterly Report (PRA 1505-0269); Annual Performance Report (PRA 1505-0269). Both quarterly and annual reports are due approximately one and a half months after the end of the period. Condition – The Corporation did not file the 4th quarter of 2024 Quarterly Report and 2024 Annual Report by established deadlines. Cause – The Corporation’s internal controls did not ensure timely submission of required reports. Effect – The Corporation did not file the 4th quarter of 2024 Quarterly Report and 2024 Annual Report by established deadlines, but the reports were filed. Questioned Costs – N/A Context – Out of a sample of two quarterly reports filed during the year and one annual report filed during the year, one of the Corporation’s quarterly reports and the annual report were not submitted either prior to the established due date or extension date provided. Our sample was not designed to be statistically valid. Recommendation – We recommend the Corporation implement policies and procedures to ensure required reports are completed and filed by their respective due dates as required by the grant agreement and Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions – The reports were filed late due to inadequate deadline monitoring. Management will implement procedures to ensure the timely and accurate submission of Homeowner Assistance Fund (HAF) Quarterly and Annual Performance Reports. Reporting deadlines are tracked on the Corporation’s federal reporting and compliance calendar, with oversight by the AVP of Grants Compliance and Reporting, who actively monitors reporting progress and coordinates reconciliation of financial data between the HAF Program Manager and Accounting. The AVP of Grants Compliance and Reporting reviews each completed report for accuracy and completeness, signs and dates the report, and submits it to the SVP of Federal Grants for final review and approval. The HAF Program Manager provides confirmation of successful submission through the U.S. Treasury portal. These procedures will be incorporated into the HAF Program Manual. Anticipated Completion Date: March 31, 2026

HOME Investment Partnership Program Assistance Listing Number 14.239 U.S. Department of Housing and Urban Development Criteria or Specific Requirement – Special Tests and Provisions -Housing Quality Standards, 24 CFR Sections 92.209(i)), 92.251(f), and 92.504(d) Condition – The spreadsheet used by the Corporation for tracking of the status of housing quality inspections was not followed, and he position responsible for performing the inspections became vacant during the year which caused certain property inspections to become delinquent. Questioned Costs – N/A Context – Housing quality inspections of 14 of 25 properties were delinquent at June 30, 2024. We did not sample the population as 100% of the population was analyzed. Effect – Housing quality property standards may be unmet, and the situation could go undetected by the Corporation. Prior Year Auditing Finding – N/A Cause – The position responsible for the Corporation was vacant during the year, and no other personnel in the department completed the required housing quality inspections. Recommendation – We recommend the Corporation utilized a tracking system to ensure properties are subject to housing quality inspections within their required timeframe. Further, we recommend the Corporation develop a contingency plan to ensure the inspections are completed if the position remains vacant.

2024-002 Housing Opportunities for Persons with AIDS Assistance Listing Number 14.241 U.S. Department of Housing and Urban Development Criteria or Specific Requirement – Reporting – Under the requirement of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) Condition – The Corporation did not report the subaward information for the fiscal year ended June 30, 2024. Questioned Costs – N/A Context – One of the Corporation’s ten subawards was initially selected for testing under the program. The Corporation did not report the subaward information for the approximately $779,000 passed through to sub recipient in fiscal year 2024. The sample was not intended to be, and was not, a statistically valid sample. Upon further discussion and analysis, the Corporation did not report the subaward information for any of the subawards, which totaled approximately $2,380,000 in fiscal year 2024. Effect – The Corporation did not report the subaward information as required. Prior Year Auditing Finding – N/A Cause – The Corporation did not have adequate controls or procedures in place to identify the applicable reporting requirements and ensure the information was filed accurately and timely. Recommendation – We recommend the Corporation implement policies and procedures to ensure required reports are completed and filed by their respective due dates as required by the grant agreement and Uniform Guidance.

Emergency Rental Assistance Program Assistance Listing Number 21.023 U.S. Department of Treasury Criteria or Specific Requirement – Eligibility, 15 USC 9058a, Emergency Rental Assistance program (ERA1) – Section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (December 27, 2020), and Emergency Rental Assistance program (ERA2) – Section 3201 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (March 11, 2021) Condition – Although the Corporation has implemented controls over compliance with their Emergency Rental Assistance (ERA) Program’s policies and procedures, which included fraud prevention and detection procedures, the Corporation identified program applicants with indicators of potential fraud that could not be independently evaluated by the Corporation under the applicants’ self-certification process allowed by ERA. The Corporation discovered 38 applicants in fiscal year 2023 that included potential fraud indicators. Funds were disbursed to these applicants prior to the Corporation becoming aware of the potential fraud indicators. The potential fraud was not material to the program as a whole. Questioned Costs – None. Context – Following the criteria from the U.S. Department of Treasury (the Treasury) as defined in the OMB Compliance Supplement, no exceptions were identified in the auditor’s sample of 40 applicants. The Corporation provided the list of identified potentially fraudulent applicants to the auditor separate from the sample tested by the auditor. Effect – The aforementioned applicants were determined to be potentially fraudulent by the Corporation on the basis of the presence of potential fraud indicators. The Corporation provided the list of identified potentially fraudulent applicants to the Office of the Attorney General of the State of Mississippi. Prior Year Auditing Finding – 2022-001 Cause – The Treasury allowed applicants to provide self-certification of financial hardship to meet statutory eligibility requirements. The Corporation followed the prescribed Treasury and ERA guidelines. Recommendation – Even though the guidelines as established by the Treasury were followed, we recommend the Corporation continue to follow its policies and procedures as it relates to the prevention and detection of fraud and consider the need to develop additional procedures and controls to identify fraud.

Emergency Rental Assistance Program Assistance Listing Number 21.023 U.S. Department of Treasury Criteria or Specific Requirement ? Eligibility Condition ? Although the Corporation has implemented controls over compliance with their Emergency Rental Assistance (ERA) Program?s policies and procedures, which included fraud prevention and detection procedures, the Corporation identified program applicants with indicators of potential fraud that could not be independently evaluated by the Corporation under the applicants? self-certification process allowed by ERA. The Corporation discovered 1,229 applicants in fiscal year 2022 and 13 applicants in fiscal year 2021 that included potential fraud indicators. Funds were disbursed to these applicants prior to the Corporation becoming aware of the potential fraud indicators. The potential fraud was not material to the program as a whole. Questioned Costs ? None. Context ? Following the criteria from the U.S. Department of Treasury (the Treasury) as defined in the OMB Compliance Supplement, no exceptions were identified in the auditor?s sample of 40 applicants. The Corporation provided the list of identified potentially fraudulent applicants to the auditor separate from the sample tested by the auditor. Effect ? The aforementioned applicants were determined to be potentially fraudulent by the Corporation on the basis of the presence of potential fraud indicators. During November 2021, the Corporation provided the initial list of identified potentially fraudulent applicants to the Office of the Attorney General of the State of Mississippi. Prior Year Auditing Finding ? N/A Cause ? The Treasury allowed applicants to provide self-certification of financial hardship to meet statutory eligibility requirements. The Corporation followed the prescribed Treasury and ERA guidelines. Recommendation ? Even though the guidelines as established by the Treasury were followed, we recommend the Corporation continue to follow its policies and procedures as it relates to the prevention and detection of fraud and consider the need to develop additional procedures and controls to identify fraud.Views of Responsible Officials and Planned Corrective Actions - In addition to following the Corporation?s policies and procedures developed in accordance with ERA Program guidelines established by the Treasury; the Corporation implemented additional procedures related to fraud prevention and detection. The Corporation began independent property ownership searches, added additional application review requirements for large tenant-paid payments, and added additional recertification requirements including proof of payment to landlord. Effective August 15, 2022, Governor Reeves directed Mississippi Home Corporation to stop accepting new applications for assistance through the ERA Program. All applications received prior to August 15, 2022, would continue to be processed in accordance with federal law and program rules and regulations. After such applications are processed, the remaining federal funds, if any, will be returned to the United States Department of Treasury.

HOME Investment Partnerships Program Assistance Listing Number 14.239 U.S. Department of Housing and Urban Development Criteria or Specific Requirement ? Special Tests and Provisions ? Housing Quality Standards ? 24 CFR Sections 92.209(i), 92.251(f), and 92.504(d) Condition ? The spreadsheet used by the Corporation for the tracking of the status of housing quality inspections was not followed, and the position responsible for performing the inspections was vacant during the year which lead to certain property inspections becoming delinquent. Questioned Costs ? N/A. Context ? Housing quality inspections for 5 of 17 properties were delinquent at June 30, 2022. Effect ? Housing quality property standards may be unmet, and the situation could go undetected by the Corporation. Prior Year Auditing Finding ? N/A Cause ? The position responsible for the Corporation was vacant during the year, and no other personnel in the department completed the required housing quality inspections. Recommendation ? We recommend the Corporation utilize a tracking system to ensure properties are subject to housing quality inspections within their required timeframe. Further, we recommend the Corporation develop a contingency plan to ensure inspections are completed if the position remains vacant. Views of Responsible Officials and Planned Corrective Actions ? Due to turnover and the existing labor market, positions within the HOME grant department remain unfilled. Additionally, current staffing levels have not allowed for crossutilization of another employee to complete the required inspections. The Corporation is seeking to fill open positions or hire a contractor to complete the required inspections.

GSA_MIGRATION