Finding 1155281 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-25

AI Summary

  • Core Issue: The PHA failed to submit required forms for Capital Fund Program grants, leading to non-compliance with HUD reporting requirements.
  • Impacted Requirements: Missing submissions include Form HUD 53001 for grant closeout and Form HUD 50075.1 for annual updates on planned activities and expenditures.
  • Recommended Follow-Up: The PHA should promptly submit Form HUD 53001 for the 2021 grant and prepare Form HUD 50075.1 for the 2022, 2023, and 2024 grants to ensure compliance.

Finding Text

2024-001 – HUD CAPITAL FUND PROGRAM (CFDA #14.872) REPORTING Federal Program Name: Capital Fund Program Assistance Listing Number: 14.872 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Reporting Criteria: Per 24 CFR 905.324 – Data Reporting Requirements, PHAs must submit required Capital Fund Program data in the format prescribed by HUD, including: • Annual Statement / Performance and Evaluation Report (Form HUD 50075.1) – submitted for each open Capital Fund grant to identify planned work activities, budgets, and quantities, and updated at least annually to reflect progress and any reprogramming. • Actual Modernization Cost Certificate (Form HUD 53001) – submitted at the closeout of each Capital Fund grant to certify the final actual costs for all work items, in accordance with the HUD grant agreement and Capital Fund closeout procedures. These forms must be current, accurate, HUD approved, and submitted via the Energy and Performance Information Center (EPIC) before the obligation, expenditure, or closeout of funds. Condition: The 2021 Capital Fund Program grant was completed, but the PHA did not submit Form HUD 53001 to HUD to close out the grant. Additionally, for the 2022, 2023, and 2024 Capital Fund Program grants, the PHA did not prepare or update Form HUD 50075.1 in EPIC to reflect actual progress and expenditures. Cause: Staff turnover and lack of familiarity with EPIC reporting deadlines contributed to the oversight. Effect: The PHA is out of compliance with HUD Capital Fund Program reporting requirements. Repeat Finding: No Recommendation: We recommend the PHA immediately complete and submit HUD 53001 for the 2021 grant to HUD for closeout. Additionally, the PHA should prepare and submit HUD 50075.1 for the 2022, 2023, and 2024 grants, ensuring they reflect actual expenditures and progress.

Corrective Action Plan

Management will submit the HUD-53001 for the 2021 grant and will submit the HUD-50075.1 for the 2022, 2023, and 2024 grant years. Management will seek out training to increase familiarity with EPIC and the reporting deadlines.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1155282 2024-002
    Material Weakness Repeat
  • 1155283 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $2.46M
14.872 Public Housing Capital Fund $1.29M
14.850 Public and Indian Housing $1.12M
10.415 Rural Rental Housing Loans $767,957