Finding Text
Condition: Out of the 36 grant drawdowns during the year, of the 15 drawdowns that were
tested, 3 of the drawdowns were made in advance of the supporting invoices being paid and
subsequently the invoices were not paid within the 72-hours, as required.
Context: The auditor haphazardly selected 15 grant drawdowns from the population, which
we consider to be a statistically valid sample size. The auditor reviewed the drawdowns and
supporting documentation to ensure proper procedures are being followed and that the
Authority is in compliance with HUD requirements.
Criteria: The U.S. Treasury per 2 CFR section 200.305 (2 CFR section 200.302(b)(6))
requires grant funds received by the Authority to be properly spent within 72 hours of receipt.
HUD regulations require that proper documentation be maintained for all Capital Fund
Program per 24 CFR 905.326.
Cause: The Authority experienced staff turnover in the finance department as well as difficulty
replacing personnel knowledgeable with HUD and grant reporting requirements.
Effect: The Authority did not disburse the capital funds in a timely manner for some of the
draws made during the year.
Questioned Costs: $379,570
Auditor’s Recommendations: The Authority should continue to develop and implement
internal controls over grant management to coordinate capital fund draws with the timing of
invoice payments.
View of Responsible Officials: See Corrective Action Plan