Finding #2025-001 Period of Performance: Statement of Condition – The Housing Authority of the Town of Winchester failed to obligate and expend Capital Fund grants within the respective 24 month and 48 month period of performance requirements. Criteria – Unless an extension is approved by HUD, a PHA must obligate at least 90% of each Capital Fund grant, including formula grants, non-accumulating RHF, natural disaster, and lead-based paint grants within 24 months of funds becoming available to the PHA for obligation. A PHA must expend 100% of the authorized amount of a Capital Fund grant within 48 months of the date that funds are made available, or the obligation start date. (2 CFR section 905.306) Cause of Condition – Prior authority management had not obligated and/or expended Capital Fund grants for the Authority’s 2020, 2021, 2022, and 2023 Capital Fund grants within the required period of performance. Effect of Condition – The effect is that the Housing Authority has been disqualified from receiving 2024 and 2025 Capital Fund grants of approximately $500,000 by their local HUD field office. Recommendation – We recommend that management implement procedures to ensure that Capital Fund grants be obligated and expended withing the required period of performance. The authority board has already hired a new executive director with more experience to manage the Capital Fund program.