Finding Text
Criteria: Capital Funds may only be drawn down to cover eligible costs that have been described in the PHA’s approved CFP Annual Statement/Performance and Evaluation Report or CFP 5-Year Action Plan. Drawdowns must be for expenses that have already been incurred (“paid for”) by the PHA. Drawdowns require proper, approved invoices. Statement of Condition: The PHA drew down funds for 3 separate Capital Fund years that did not have documentation for proper expenditure for Capital Fund purposes. Questioned Costs: $72,311. Context: The PHA was unable to provide invoices to support these drawdowns of Capital Fund Money. Cause: The former finance officer requested that Capital Funds be drawn down without proper documentation for the Capital Fund expenditure. Effect: An accounts payable to HUD has been set up at March 31, 2025 for the reimbursement of these funds to HUD. Identification of a Repeat Finding: No. Recommendation: Prior to requesting drawdowns of Capital Funds, all documentation should be reviewed to ensure that the Capital Funds will be used for the intended purpose. Views of responsible officials and planned corrective actions: The PHA agrees with this finding and will implement adequate checks and balances to ensure that this problem does not reoccur.