Finding Text
2025-005. Interfund Receivable / Payable. Federal Awards: 14.871 – Section 8 Housing Choice Vouchers Compliance: Activities Allowed or Unallowed Type: Material weakness2025-005. Criteria: HUD has certain regulations and procedures which should be followed by the PHA. Specifically, HUD programs should not advance or accept loans to/from other HUD or non-HUD programs. Condition: At year end, the PHA had the following inter-program receivable/payable between programs: Program Due From (Due To) Business Activities $ 136,166 $ 1,750 State & Local 1,750 --- Housing Choice Voucher --- (136,166) $ 137,916 $ (137,916) Questioned Costs: None noted. Effect: Funds were advanced to other HUD/non-HUD programs. Cause: It appears that the Authority has not been diligent in ensuring all programs pay their share of expenses to other programs in a timely manner creating a significant balance of amount owed. Recommendation: I recommend that the Authority implement a plan where all programs owing other programs can re-pay in a timely manner. Management’s Response: Up to this point, many of the interfund transactions have occurred with automatic transactions programed by our paid Fee Accountant. Salina Housing Authority staff review the automatic transactions with our Fee Accountant to ensure all necessary transactions are taking place and the transactions are being coded into the correct account. The housing authority will work to ensure necessary transactions are properly recorded timely and accurately so that the accounts are correct and not underfunded.