Finding Text
Criteria: The Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI section 4-14.871-
18 states:
"The annual contributions contract (ACC) establishes the amounts HUD will provide a public
housing agency (PHA) for housing assistance payments (HAP) and administrative fees. HAP may
not be used to cover administrative expenses nor may HAP (including restricted net position
[RNP]) be loaned, advanced, or transferred to other component units or other programs such as
Public and Indian Housing (CFDA 14.850) (24 CFR sections 982.151 and 982.152)."
Condition: We were unable to perform compliance testing due to unavailability of the requested FASSPH
report. We therefore were unable to determine whether transfers and advances of HCVP funds were
properly conducted and whether the Housing Choice Voucher Program's HAP and administrative fee
funding were used appropriately.
Cause: Lack of internal control over the preparation and submission of the FASS-PH report.
Effect or Potential Effect: Use of funds for unallowed costs. The Housing Authority is not in compliance
with grant requirements.
Questioned Costs: $108,104. $77,542 for professional services and $30,562 in HAP administrative fees
over reimbursed to the City. These amounts are based on the OIG audit report dated July 11, 2019.
Context: The Housing Authority did not submit the required annual FASS-PH report to HUD, and we
therefore were unable to perform the required procedures for the operating transfers and administrative
fees compliance component of special tests and provisions of the program.
Repeat of a Prior-Year Finding: 2017-010