Finding Text
Criteria Per 24 CFR 200.05, Housing Authorities are to minimize the time federal funds are drawn down to expenditure. Additionally 24 CFR 905.310 states that PHA shall initiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule. Condition Management did not follow the 3 day rule. Context During the fiscal year, management drew down CFP funds to provide funding to improve Public Housing. They had an invoice from a supplier, but discovered an issue with the invoice after the voucher had been submitted and the funds had been deposited into the Authority's bank account. Due to the invoice issue, management did not pay the invoice within 3 days. Cause Management did not review and verify the invoice before requesting a draw from the Capital Fund Program. Effect The Authority is not in compliance with Cash Management rules relating to the Capital Fund Program. Recommendations The Authority creates internal controls to ensure invoices are correct before requesting funds from the Capital Fund Program. Questioned Costs None Management Views Management Agrees