Finding 1218814 (2025-003)

Non-compliance with Cash Management Requirements of the Capital Fund Program (Other Noncompliance) Capital Fund Program – Assistance Listing No. 14.872, Grant Period- Fiscal Year-End September 30, 2025 Criteria Uniform Guidance Cash Management requirements of the Capital Fund Program require the Authority to minimize time elapsing between the transfer of funds from the U.S. Treasury and disbursement to the applicable contractors or vendors (2 CFR Section 200.305.b). Condition As of the beginning of fiscal year 2025 the Authority held $179,995 of unexpended Capital Fund Program grant draws. Instead of funding Capital Fund Program expenditures from these unexpended funds during the fiscal year 2025, the Authority continued to draw funds from Capital Fund Program grants to fund fiscal year 2025 expenditures. Further, during fiscal year 2025 the Authority drew an additional $475,945 of Capital Fund Program grant proceeds, which were not expended during the fiscal year and resulted in cumulative unexpended grant draws (unearned grant revenue) as of September 30, 2025 of $655,940. Questioned Costs - None Cause Lack of sufficient understanding of Cash Management Requirements of the Capital Fund Program. Effect Non-compliance with Uniform Guidance Cash Management requirements of the Capital Fund Program. Recommendation With the exception of Capital Fund Program grant authorizations budged for Public Housing Program operating assistance (Capital Fund Grant Budget Line Item 1406), we recommend that the Authority expend the unexpended Capital Fund Program grant proceeds held prior to drawing down additional funding from Capital Fund Program grants.Management’s Response Management's Response- With the exception of Capital Fund Program grant authorizations budged for Public Housing Program operating assistance, the Authority will expend the unexpended Capital Fund Program grant proceeds held prior to drawing down additional funding from Capital Fund Program grants. Jebidiah Jackson, Executive Director, has assumed the responsibility of executing this corrective action as of August 1, 2026.