Finding Text
2024-008 ALN 14.872 – Public Housing Capital Fund Program – Reporting
Condition and Criteria:
Per HUD regulations and the CFP Grant Agreement, PHAs are required to prepare and update
Form HUD-50075.1 for each open CFP grant. Updates must be made as funds are obligated
and expended, and the report must be submitted in EPIC timely to reflect the status of each
open grant. This ensures that HUD has adequate visibility into the use and progress of capital
funds.
During our testing of compliance with the Capital Fund Program (CFP) reporting
requirements, we noted that the Authority did not timely prepare or submit HUD Form
50075.1 (Performance and Evaluation Report) for grant number CFP 501-22 as required. The
report was not submitted in accordance with HUD’s prescribed timeline, which requires
ongoing updates and timely submissions in the EPIC system as funds are obligated and
expended.
Amount of Questioned Costs:
None.
Context: The HUD Form 50075.1 (Performance and Evaluation Report) for grant number CFP 501-22
was not prepared in a timely manner.
Cause:
The untimely submission appears to be the result of oversight and a lack of monitoring
controls to ensure timely preparation and reporting in EPIC for all active CFP grants. This was
the result of prior management's record keeping.
Effect:
Failure to timely prepare and submit the required HUD 50075.1 report limits HUD’s ability to
assess grant progress and could potentially result in administrative action, including grant deobligation
or delays in future funding. It also represents noncompliance with HUD reporting
requirements.
Auditor’s Recommendation:
We recommend that the Authority implement stronger internal controls and monitoring
procedures to ensure all required HUD reports, including Form 50075.1, are prepared and
submitted timely. Staff should receive training on CFP reporting timelines and EPIC system
requirements to ensure compliance moving forward.
Grantee Response:
Management acknowledges the finding and will follow the auditor’s recommendation.