Capital Fund Program-CDFA#14.872 2025-001-CFP funds not timely advanced and spent-Cash Management Criteria and Specific Requirement Capital Fund grants are awarded annually of varying amounts. Management is repeatedly advised by HUD via emails that funds must be obligated no more than two years from the date of the grant, and funds must be expended no more than four years from the date of the grant. When dates are missed, the particular CFP, in addition to future CFPs, are subject to recapture, in whole or in part. Another principal issue is that the Board Chairperson is required to go on line to HUD on a quarterly basis and certify that the named Executive Director is certified to request HUD advances via the HUD ELOCCs system. HUD continually sends the authority notices of ELOCCS Recertification due dates. Failure to timely certify results in suspension from ELOCCS for the entire authority personnel. Condition Found (a)-for the 2019 CFP, HUD recaptured $37,037, due to the obligation date being missed. (b)-for the 2021 CFP, $15,909 was recaptured, due to the obligation date being missed. (c)-for the 2020, 2022, and 2023 CFPs, HUD has suspended the drawdowns. (d)-for the 2024 and 2025 CFP grants, as of September 30, 2025, zero had been expended or advanced. HUD has also suspended drawdowns for these grants. Cause Management asserts that part of the reason the funds were recaptured for the 2019 program was that although the funds were timely obligated, they were misclassified on the financial statements, and not properly charged to the CFP. The error was not found on a timely basis. For most if not all of the other instances, management claims that part of the issue is the that the board chairperson has not recertified on line the Executive Director, on a quarterly basis, as required, and outlined in the second paragraph above of Criteria. Management claims that the board chairperson claims this is not part of his job. We have not communicated with the board chairperson on this. Effect This has resulted in a material loss of funds by the Authority. Recommendation The Executive Director should request another meeting with the Board Chairperson. The E.D. should review the HUD paperwork with the Chairperson, to fully explain the Chairperson’s role in this. View of Responsible Official I am Jill Rochon, Executive Director and Designated Person to answer this finding. I will follow the auditor’s advice. I have been in phone contact with HUD-New Orleans about this situation.