Audit 369785

Finding No. 2024-001: Obligation Requirement for Capital Fund Program Drawdowns (Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Capital Fund Federal Assistance Listing Number: 14.872 Compliance Requirement: Period of Performance Criteria: Per HUD regulations, Capital Fund Program costs are required to be obligated within 24 months of the execution of the grant with documentation showing the funds were truly obligated. Condition: The Authority did not have adequate controls over the obligation process, resulting in Capital Funds obligated in HUD’s eLOCCS without obligating the funds. Context: The Authority had two Capital Fund grants with obligation deadlines during the year, and neither had the proper documentation. Effect: The Authority did not appropriately obligate the CFP funds by the deadline. Cause: The Authority did not have the appropriate controls over the obligation process to obligate the funds by the deadline. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure that funds are obligated in a timely manner. Views of Responsible Officials: The Authority agrees with the finding.

Finding No. 2024-002: Failure to Submit CFP Reports on Time (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Capital Fund Federal Assistance Listing Number: 14.872 Compliance Requirement: Reporting Criteria: Per HUD regulations, Public Housing Authorities (PHAs) are required to submit an Actual Modernization Cost Certificate within 90 days after the expenditure end date of a CFP grant. Per HUD regulations, PHAs are required to submit an initial Annual Statement Performance and Evaluation Report (HUD 50075.1) prior to the CFP award date. Condition: The Authority did not have adequate controls over the reporting process, resulting in an AMCC and HUD 50075.1 not being submitted on time. Context: The Authority had one Capital Fund grant with an obligation deadline during the year, and one Capital Fund grant awarded during the year. The corresponding AMCC and HUD 50075.1 reports were not submitted on time. Effect: The Authority did not appropriately report CFP grant activity by the required deadlines. Cause: The Authority did not have the appropriate controls over the reporting process to submit the reports by the deadlines. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure that reports are submitted in a timely manner. Views of Responsible Officials: The Authority agrees with the finding