Audit 379790

Low Rent Program-CDFA#14.850 and Housing Choice Voucher Program-CDFA#14.871 Finding 2025-001-Per Diem Improperly Paid- Allowable Costs/Cost Principles Criteria and Condition Expenditures must be ordinary and necessary, and in accordance with the mission statement terms outlined in the Authority’s Annual Contributions Contract (ACC). Section 14 (B) states “No funds of any project may be used to pay any compensation for the services of members of the HA Board of Commissioners.” Context The Board of Commissioners were paid individually for attendance at the board meetings. The amount for much of the year, $50 per meeting, was later raised to $75 per meeting. The ACC prohibits the payment of a per diem for attendance at board meetings. While the commissioners are greatly appreciated for agreeing to serve on the board to aid their local community, the per diem should not have been paid, since the ACC does not allow these payments. Per diem is allowed for travel, and will continue to be paid. Effect A total of $ 6,775 was paid to the board commissioners for the audit year, which should not have been paid. Cause This was an ongoing practice, and was in place before the new Executive Director started in March 2025. Questioned Cost $6,775 Recommendation Per diem payments should not be paid for any future board meetings. In addition, current commissioners and the E.D. should agree on a repayment schedule to reimburse the authority for the payments made in the current audit year. Views of Responsible Officials and Planned Corrective Action I am Angela Beverly, Executive Director and Designated Person to answer this finding. We will comply with the auditor’s recommendation.