2024-002 Capital Fund Drawdowns Federal Program: Public and Indian Capital Fund Program, Federal Assistance Listing No. 14.872 Criteria: Under federal guidelines, the capital fund program operates as a reimbursement grant. As such, all amounts must be committed or spent prior to their drawdown. Condition: The entity is required to expend funds as they are drawn down from its capital fund program. As of the end of the fiscal year, drawdowns exceeded recorded expenses by $82,043. As of the end of the fiscal year, this amount is showing as unearned revenue and has not been expended. Questioned Costs: None Effect: Amounts were drawn down in an amount that exceeded the documented expenses for the capital fund program. Cause: The PHA drew down funds in anticipation of spending them but they were not spent at year end. Recommendation: The PHA should ensure that all funds are expended prior to being drawn down. Views of responsible officials and planned corrective actions: We will ensure that all future draws are supported by documentation and are spent as the funds are received. Expected correction date is December 31, 2025.