Finding 1153768 (2025-003)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2025-09-22

AI Summary

  • Core Issue: Vouchers issued by HUD were not signed by management, violating CFR 905.310(b).
  • Impacted Requirements: The Authority is non-compliant with cash management rules for the Capital Fund Program.
  • Recommended Follow-Up: Ensure management understands and complies with cash management requirements moving forward.

Finding Text

Criteria: Per CFR 905.310(b), the PHA shall maintain detailed disbursement records to document eligible expenditures(e.g contracts or other applicable documents), in a form and manner prescribed by HUD. Condition: Management did not sign the voucher issued by HUD. Context: The auditor selected 10 vouchers(all vouchers over significant item threshold) relating to BLI 1480 to test allowable cost. While reviewing the supporting documents related to each voucher, the auditor noted that none of the vouchers were signed by management. Per HUD guidance, the voucher needs to be signed by management. Cause: Mangement did not know of the requirement. Effect: The Authority is not in compliance with Cash Management rules relating to the Capital Fund Program. Recommendations: The Authority needs to understand and comply with Public Housing Capital Fund Program's cash management rules. Management Views: Management agrees, see corrective action plan.

Corrective Action Plan

HACM Management will sign all Capital Fund vouchers going forward.

Categories

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.92M
14.850 Public Housing Operating Fund $1.23M
14.871 Section 8 Housing Choice Vouchers $1.07M