Finding Text
Cash Management
Federal Agency: Department of Housing and Urban Development
Federal Program Name: Capital Fund Program
Assistance Listing Number: 14.872
Federal Award Identification Number and Year: MN46P085501-19, MN46P085501-21 – FY2024
Award Period: October 1, 2023 – September 30, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance, Other Matters
Criteria or Specific
Requirement: The HRA is required to spend draw down of funds within three business days of receiving the funds.
Condition: During cash management testing, it was noted that the HRA drew down funds and did not spend them within the three day requirement.
Questioned Costs: $112,280
Context: During testing, it was noted that the prior year draw down was not properly spent within the required timeframe.
Cause: Oversight by management.
Effect: The potential exists that the HRA loses funding.
Repeat Finding: No
Recommendation: We recommend that the HRA continue to evaluate their procedures and controls in place over the draw down of funds.
Views of Responsible
Officials: Management agrees with the finding and will continue to evaluate its processes over draw requests.