Finding Text
Finding 2025-003: Fee-for-Service Allowable Costs / Special Tests and Provisions Public Housing Operating FundAL#14.850 Significant Deficiency Statement of Condition Fees for services were not calculated or funded throughout the year, with fee amounts calculated and recorded during the yearend close process. Criteria PHA’s that establish a COCC shall fund non-project-specific costs through management fees from each property. Cause Significant employee turnover led to the suspension of management fee funding to the COCC during the year. Effect or Potential Effect COCC costs were indirectly funded by Public Housing Operating reserves due to COCC having insufficient funds to cover operating costs. Lack of management fee procedures increases the potential for noncompliance due to inability to monitor COCC financial performance. Recommendation We recommend the Authority provide additional support and training during new employee onboarding to specifically address the accounting and system procedures required comply with Authority policy and HUD regulations. Management’s Response Management agrees with the finding, see Corrective Action Plan for plan of action. .