Audit 366907

2024-002 Noncompliance with Cash Management (Public Housing Capital Fund CFDA 14.872) Criteria: Federal Code of Regulations, 2 CFR § 200.305 requires the Authority to maintain both written procedures that minimize the time elapsing between the transfer of funds from HUD and disbursement of those funds for eligible costs and financial management systems that meet the standards for fund control and accountability. Advance payments to the Authority must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the Authority in its Capital Fund Program. Furthermore, in accordance with 2 CFR § 905.310, the Authority shall initiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule as authorized by 2 CFR 200.305. The Capital Fund Program rules provide guidelines of 3 business days from drawdown to expenditure. Condition: During the year, the Authority had 24 transactions in its Capital Fund Program for grants ranging from CFP 2019-2022. All transactions made during the year did not adhere to the requirements to minimize the time federal funds were drawn down to expenditures of 3 business days. Questioned Costs: None. Effect: The Authority did not properly follow the requirements of 2 CFR § 200.305 and 905.310. Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to Cash Management. Recommendation: The Authority’s staff should familiarize themselves with Capital Fund Program rules and guidelines in relation to Cash Management. Management Response: Management was unaware of the Cash Management rules and guidelines of the Authority’s Capital Fund Program. We will ensure all future eligible Capital Fund draws are made within 3 business days of expenditures.

2024-003 Utility Allowances not reviewed at least annually (Housing Choice Voucher Program ALN# 14.871) Criteria: Federal Code of Regulations, 2 CFR § 982.517(c) requires the Authority to review its schedule of utility allowances each year, and must revise its allowance for each utility category if there has been a change of 10 percent or more in the utility rate since the last time the utility allowance schedule was revised. The PHA must maintain information supporting its annual review of utility allowances and any revisions made in its utility allowance schedule. Condition: During the year, the Authority did not perform a review of its utility allowances to determine if the utility allowances increased by 10 percent or more. The previous review was performed in June 2021. Questioned Costs: None. Effect: The Authority did not properly follow the requirements of 2 CFR § 982.517 (c). Cause: The Authority did not have an adequate understanding of the Housing Choice Voucher Program requirements to perform annual review of its utility allowances. Recommendation: The Authority’s staff should familiarize themselves with the Housing Choice Voucher Program rules and guidelines. Management Response: Management had a utility allowance review performed in January 2025. We will ensure prompt annual reviews of the Authority’s utility allowances are performed with supporting documentation.