Federal Reports

We audited costs claimed and grant compliance by the South Carolina Department of Natural Resources under grants awarded by the FWS. We found deficiencies in internal controls resulting in our findings of late submission of Federal Financial Reporting. The FWS concurred with the two recommendations, and we consider them resolved and implemented.

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of FHA as of and for the fiscal years ended September 30, 2021 and 2020, and to provide reports on FHA’s 1) internal control over financial reporting; and 2) compliance with laws, regulations, contracts, and grant agreements in its financial reporting. Our contract with CLA required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.In its audit of FHA, CLA reported:The consolidated financial statements as of and for the fiscal year ended September 30, 2021, are presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.One material weakness and one significant deficiency in internal control over financial reporting, based on the limited procedures that it performed.A material weakness existed related to FHA controls over financial accounting and reporting. A significant deficiency existed related to FHA econometric modeling activities used to estimate the agency’s loan guarantee liability.No reportable noncompliance issues for fiscal year 2021 with provisions of applicable laws, regulations, contracts, and grant agreements tested and no other matters.We will provide a replacement report for posting, once HUD publishes its Agency Financial Report, which will include this report and the audited financial statements.

The objectives of our review were to review States’ initial 45-day GEER Fund reports to determine how States plan to allocate funds to entities within the three authorized categories: local educational agencies (LEA), institutions of higher education (IHE), and education-related entities, and the criteria upon which these decisions were based; and review GEER Fund annual reports to identify changes to and progress made from the initial plans in the 45-day reports.We found that within the three authorized entity categories, 45 States (87 percent) planned to allocate GEER funds to LEAs, 39 States (75 percent) planned to allocate funds to IHEs, and 36 States (69 percent) planned to allocate funds to other education-related entities. Further, we found that 41 States (79 percent) planned to allocate GEER funds among more than one entity category. Of the remaining 11 States, 5 States (10 percent) planned to allocate funds to only LEAs, 3 States (6 percent) to only IHEs, and 2 States (4 percent) to only other education-related entities. One State did not include information that specified its intended allocation of funds by entity category.