Audit 405513

Criteria - Per Capital Fund Program (CFP) (Assisting Listing Number 14.872) regulations (24 CFR 905.322), a Public Housing Authority is required to submit form HUD-53001, Actual Modernization Cost Certificate (AMCC) along with the final HUD-50075.1, Performance and Evaluation Report (P&E) within 90 days after the expenditure end date of the grant, in order to initiate the closeout process. The AMCC and P&E must detail actual costs incurred from the Date of Full Availability (DOFA) to the completion of the modernization project. Condition - The Authority failed to submit the final P&E along with the AMCC to HUD by the 90 day due date for its CFP RI01P004501-21 grant. Cause - The failure to complete the P&E with the AMCC and closeout process appears to stem from administrative oversight and a lack of monitoring controls to ensure compliance with HUD’s grant requirements. Effect - Failure to timely submit the P&E with the AMCC resulted is non-compliance with HUD regulations, which may affect the Authority’s ability to secure future funding allocations. Questioned Costs - None identified. Repeat Finding - This is not a repeat finding. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - The Authority should expedite the completion of the P&E with the AMCC and submit the necessary closeout documentation for grants mentioned in the Condition above. Additionally, the Authority should develop and implement a grant management tracking system to monitor the status of all active grants, including deadlines to adhere to performance reporting requirements. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will submit all required documentation to HUD. (c) Planned implementation date of corrective action - Completed by September 30, 2026.