Finding Text
Finding No. 2024-007; Activities Allowed or Unallowed - Material Weakness Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster (Section 8 Housing Choice Vouchers Program; Emergency Housing Vouchers Program; and Mainstream Vouchers Program) Assistance Listing Number: 14.871; 14.879 Federal Award Identification Number and Year: SC002 2024 Condition and Context Testing of interfund receivable balances owed to the Housing Choice Voucher Program (HCVP) and the Emergency Housing Vouchers Program (EHV) from other programs indicated unallowable uses of grant funds as noted in 24 CFR 982.151 and 982.152. Criteria Public Housing Authorities may use HCVP, EHV and Mainstream Voucher funds only for housing assistance payments to participating owners, and for associated administrative fees. Cause During the year ended June 30, 2024, HCV and EHV funds were advanced to other programs resulting in HCVP and EHV funds being used to cover costs for other federal programs and nonfederal programs. Effect or Potential Effect During the year ended June 30, 2024, the Authority used $168,899 of EHV funds and $403,752 of HCVP funds to make advances for $130,842 to the Mainstream Program, and $441,809 to cover costs of other programs in violation of HCVP and EHV program requirements. Questioned Costs $441,809 Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that the Authority reconcile and settle interfund balances on a timely basis. In addition, we recommend the Authority establish controls over HCVP and EHV grant revenue to ensure funding does not become intermingled with other programs and the outstanding advances are returned to the HCVP and EHV programs. Views of Responsible Officials(s) and Planned Corrective Actions The Authority concurs with the finding and agrees with the recommendation. The Authority has begun the process of reconciling interfund balances to ensure balances are settled on a timely basis and funds are not intermingled with other federal programs.