Finding 1117155 (2024-001)

2024-001 Compliance with Public Housing Capital Fund Federal Program: Public Housing Capital Fund, Federal Assistance Listing No. 14,782 Criteria: Capital funds transferred to operation are not considered obligated until the funds have been budgeted and drawn down. The voucher request date must occur before those funds are reported as obligated in LOCCS. PHAs shall submit HUD-53001, Actual Modernization Cost Certificate within 90 days of the expenditure end date for each grant. Condition: We noted two instances when capital funds transferred to operations for Capital Fund Programs (CFP) 501-20 and 501-21 were obligated before the date the funds were requisitioned from eLOCCS. HUD-53001 was completed for CFP 501-20 on January 29, 2024, which was past the 90-day reporting period after the conclusion pf the program’s expenditures. The final expenditure on this grant was July 19, 2023. HUD-53001 was completed for CFP 501-21 on January 23, 2025, which was past the 90-day reporting period after the conclusion of the program’s expenditures. The final expenditure on this grant was February 7, 2024. Recommendation: The Authority should not obligate funds designated for transfers to operation until the funds have been budgeted and drawn down. We did note the funds for transfers to operations for CFP 201-22 and CFP 201-23 were properly obligated when the funds were drawn down. The Authority should promptly complete HUD-53001 at the conclusion of a CFP program to ensure it complies with the 90-day reporting period. Views of responsible officials and planned corrective actions: We will comply with the auditors’ recommendations.