Finding Text
Low Rent Program-ALN#14.850 and Housing Choice Voucher Program #14.871- Allowable Costs Finding 2025-001-Interfund Payables Need To Be Reduced Criteria and Condition Funds may not be permanently used and thus transferred between funds. Low Rent funds must ultimately be used for Low Rent purposes, Housing Choice Voucher (HCV) funds used for HCV purposes, etc. Funds may be temporarily loaned in essence, when one fund pays overhead for the other, such as a split payroll. However, the loans should be promptly repaid, and the interfund receivables and payables kept to a minimum and in an evergreen situation. Context The amount owed by the Component Unit to the General Fund has increased from $15,042 at June 30, 2023 to $246,933 at June 30, 2025. In addition, the amount owed by the HCV Fund has increased from $2,774 to $66,457 at June 30, 2025. Effect The risk is increased by the substantial amounts currently owed that the Low Rent program might not be repaid. Thus, ineligible transfers would exist. Cause The current Executive Director assumed this position in December 2025, after year end. The prior E.D. was likely aware that funds exist to repay the balances owed, as noted in View of Responsible Officials below. Questioned Cost None Recommendation Management should continue to review for ways and means to reduce the interfund amounts. Views of Responsible Officials and Planned Corrective Actions I am Anna Richman, Executive Director and Designated Person to answer these findings. As a new E.D., I have only recently become aware of this situation. To reduce the interfund amounts, the avenues we may pursue include but are not limited to the following: Nonfederal funds are maintained in the State and Local Fund. For reporting purposes, this fund is combined with the Low Rent program to comprise the General Fund. We may transfer some of these nonfederal funds to the Component Unit and the HCV Fund to allow them to reduce the interfund loans. Nonfederal funds may be used for this purpose. In addition, we may transfer an increased percentage of the HCV Admin fee to be periodically transferred to the General Fund. We also note that if and when the tangible property of the Veterans Resource Center is ever sold, the funds would revert to the General Fund.