Finding Text
Period Performance • Federal Program: Public Housing Capital Fund, FALN No. 14.872 • Criteria: o Obligations. Unless an extension is approved by HUD, a PHA must obligate at least 90 percent of each Capital Fund grant within 24 months of the funds becoming available to the PHA for obligation. o Expenditures. For Capital Fund grants, unless an extension is approved by HUD, a PHA must expend all grant funds no later than 48 months after execution of the HUD ACC Amendment. o Capital Funds for Operating Costs. Capital Funds are not considered obligated until the PHA has budgeted and drawn down the funds. To meet this requirement, the funds, must be budgeted in Line BLI 1406 (Operations) and the PHA must submit the voucher request in LOCCS. The voucher request date must occur before those funds are reported as obligated in LOCCS under the Obligation & Expenditure tab. • Condition: A review of the Capital Fund expenditures revealed on grant, 501-18 was 100% expended on March 26, 2025, which was beyond the COVID extended due date of May 29, 2024. Current year operating transfers in Capital Fund program 501-23 were obligated on November 14, 2023, prior to the voucher request dates of July 11, 2024, January 13, 2025, and January 24, 2025. • Effect: Expenditures for Capital Fund program 501-18 were not expended by the extended due dates. In addition, operating funds were obligated prior to being drawn down. • Recommendation: Internal controls should be established to ensure expenditure amounts are updated timely and that the PHA reaches its 100% expended threshold within four years of award of the grant. In addition, the PHA should ensure voucher request are made and funds are drawn down for operating costs prior to them being reported as an obligation of the grant. • View of Responsible Officials and Planned Corrective Actions: The 501-18 grant was complicated by the COVID epidemic and we encountered significant delays. Our remaining on-going grants were expended timely. We were not aware of the requirement to submit a voucher request and actually draw down grant funds to be used for operating costs before they are obligated. Going forward, we will request and draw those funds down prior to reporting those funds as being obligated.