Finding 1191221 (2025-001)

Allowable Costs - Interfund receivable not being reimbursed timely. - Public and Indian Housing - ALN #14.850. Criteria or Specific Requirement: Interfund accounts should be reimbursed each month. Condition: At the end of the year, PHA's low rent program had an interfund receivable balance from the Section 8 new construction program in the amount of $135,811 which was not being reimbursed on a timely basis. Cause: Interfund account receivable was not being reconciled on a monthly basis. Effect: The low rent program has an interfund receivable of $135,811 at year-end. Questioned Costs: Balance in the interfund receivable account at year-end of $135,811. Repeat Finding: Not a repeat finding. Recommendation: The PHA's Section 8 new construction program should reimburse the low rent program for the interfund receivable balance on a monthly basis. Response: The PHA will review the activity in the interfund accounts with its fee accountant and reimburse the low rent program on a monthly basis.