Finding 1164704 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2025
Accepted
2025-12-12

AI Summary

  • Core Issue: The Authority failed to budget for $23,494 in expenditures for the Low Rent Public Housing Program, leading to unfavorable variances.
  • Impacted Requirements: NC General Statutes mandate proper budgeting for all expenditures, which was not followed.
  • Recommended Follow-Up: Regularly review budget versus actual spending and amend the budget as needed before exceeding approved amounts.

Finding Text

Statement of Condition – For the Low Rent Public Housing Program, we reviewed the budget for spending authorizations. During this review, it was discovered that the Authority had not budgeted for $23,494 in program expenditures for the year ended March 31, 2025. This resulted in unfavorable budget variances within the program. Criteria – NC General Statutes require that the Authority budget appropriately for all expenditures. Effect – This violation resulted in overspending in budgeted line appropriations. Cause – The Authority did not follow proper budgeting procedures. Recommendation – The Authority should review budget versus actual expenditures on a regular basis and should amend the budget as spending needs arise. Before an obligation is incurred that will exceed the amount that was previously approved in the budget ordinance, an amendment to the budget should be adopted. Views of responsible officials and planned corrective actions – The Authority agrees with this finding. Please refer to the corrective action plan on page 100.

Corrective Action Plan

The Authority agrees with the finding. The Authority has implemented procedures to properly budget all expenditures. The Finance team will monitor and recommend updates to the budget monthly as spending needs arise.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 1164702 2025-002
    Material Weakness Repeat
  • 1164703 2025-003
    Material Weakness Repeat
  • 1164705 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $3.61M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $2.95M
14.872 PUBLIC HOUSING CAPITAL FUND $2.49M
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $97,605
14.269 HURRICANE SANDY COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY GRANTS (CDBG-DR) $51,452
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $21,148