Finding Text
Federal Program: 14.850 - Public Housing Criteria: Public Housing Authorities are disallowed from using Operating Funds as funding to other programs.Condition: Public Housing Authority has pooled cash, and the other funds besides public housing have had negative cash balances over past fiscal years. Cause: The housing authority is using public housing reserves to fund the other funds’ shortfall. There are revolving interfunds with other funds not reconciled at year end. Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds. Questioned Costs: Not applicable. Information: Sampling was not applicable to this finding and is a systematic problem. Prior Year Finding: Not a prior year finding. Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds. Management’s Response: The Housing Authority will implement appropriate controls over Public Housing cash to ensure the proper use of Operating Funds.