Program: Low Rent Public Housing AL Number: 14.850 Finding Number: 2022-001 Audit Finding (Copied & Pasted Directly from Auditor?s Report): Condition: During our audit, the Authority transferred PHA cash and charged asset management fees in AMP 2 and AMP 3 in excess of the excess cash amount from th...
Program: Low Rent Public Housing AL Number: 14.850 Finding Number: 2022-001 Audit Finding (Copied & Pasted Directly from Auditor?s Report): Condition: During our audit, the Authority transferred PHA cash and charged asset management fees in AMP 2 and AMP 3 in excess of the excess cash amount from the 2021 audited numbers. Context: AMP 4 and AMP 10 have issues cash flowing and rely on the other AMPS to transfer excess cash every year. In 2021, the other AMPs had less excess cash, so were unable to subsidize AMP 4 and AMP 10 like normal. The Authority did not detect the cash flow issue until after the fiscal year ended. Resulting in noncompliance with the program's rules Cause: Controls were not followed to ensure fungibility rules between each project were followed Criteria: After subsidy (operating) is calculated at a project level, operating subsidy can be transferred as the PHA determines during the PHA's fiscal year to another ACC project(s) if a project's financial information, as described more fully in 240 CFR ? 990.280, produces excess cash flow, and only in the amount up to those excess cash flows. 240 CFR ? 990.205. Corrective Action to Be Taken: Executive Director, Holly Girdwood, is responsible to train/teach the Comptroller, Tara Sheffler, to perform monthly reconciliations to ensure fungibility is properly maintained. This should be completed prior to year-end December 31, 2023. In response to the context, it was our understanding that we could charge asset management fees to all AMPS due to COVID guidelines. Contact Responsible for Corrective Action: Tara Sheffler Comptroller PO Box 988 481 Neshannock Avenue New Castle, PA 16103 724-656-5100 ext. 5100 tsheffler@lawrencecountyha.com