Finding Text
Program: Public Housing Capital Funds Criteria: Capital Funds transferred to operations are not considered obligated until the PHA has budgeted and drawn down the funds. The voucher request date must occur before those funds are reported as obligated in LOCCS under the Obligation & Expenditure tab. Questioned Costs: N/A Cause: The Housing Authority obligated funds before the operations draw occurred. Effect: The Housing Authority recorded obligations that were not supported by a reimbursable cost. Prior Year Finding: No Recommendation: We recommend that the Housing Authority obligates funds for operations draws when they are drawn. Managements Response: SPHA is required to update the obligation and expenditure amounts for each open Capital Fund grant at the beginning of each month. The timing of the monthly update was an administrative error, as it was processed before the voucher request. As recommended, SPHA will ensure that funds designated for operations are obligated when the corresponding funds are drawn. This process will help ensure that future monthly updates accurately reflect the timing of obligations and expenditures.