Corrective Action Plan FYE 6/30/2025 Audit Finding # 2025-0001 – Cash Management The Housing Authority of the City of Prichard acknowledges the audit finding regarding interfund balances and accepts responsibility for implementing corrective actions to strengthen internal controls and ensure long-te...
Corrective Action Plan FYE 6/30/2025 Audit Finding # 2025-0001 – Cash Management The Housing Authority of the City of Prichard acknowledges the audit finding regarding interfund balances and accepts responsibility for implementing corrective actions to strengthen internal controls and ensure long-term financial sustainability. At the onset of the fiscal year, management recognized the need to reduce expenses and thus implemented an expense reduction strategy. In reviewing the overall operating expenses for the agency, comparing FYE 2025 to FYE 2024, overall operating expenses declined by approximately $1M, supporting management's goal to reaching a more sustainable long term financial strategy. To further this initiative and continue improving the cash flow position, management will pursue ongoing expense reductions and financial planning strategies to ensure long-term financial sustainability for the agency. This will be accomplished by implementing the following strategies: 1. Engage site management, maintenance, finance, and executive leadership in comprehensive reviews of approved budgets and financial statements to strengthen fiscal oversight and identify additional cost-reduction opportunities. 2. Executive management will review and approve specific categories of expenses to promote accountability, fiscal responsibility, and effective cost control. 3. Continue with enhancement of the agency's home ownership program, providing increased cash flows for operations and improved financial sustainability. 4. Evaluation measures will continue in which intercompany account balances will be reviewed on a monthly basis, determining which entities can support an intercompany reimbursement to the lending property. Upon determining entities with available cash flows, reimbursements will be processed. 5. Continue the agency's initiatives to increase revenues through transition of properties to other revenue streams that would provide more flexibility in establishing an increased rent structure (i.e. PBVs, market rate rents, etc.) As cash flow conditions improve, management will develop and implement a repayment plan to address intercompany balances, recognizing this as a long-term initiative critical to the Agency’s financial sustainability.