Finding Text
2025-003 Noncompliance with Period of Performance (Public Housing Capital Fund ALN 14.872) Criteria: Federal Code of Regulations, CFR § 905.314 (l) requires the Authority to first drawdown Budget Line item 1406 Operations before amounts are obligated. Condition: During the year, the Authority made three Operations draws from CFP 2019, 2020, and CFP 2021 in the amounts of $15,000 for each grant. The Operations draw for CFP 2020 was made after amounts were reported as obligated in ELOCCS. CFP 2020 was reported as 100% obligated on February 6, 2025. However, the BLI 1406 draw did not occur until 11/26/2025. The operations draws from CFP 2019 and CFP 2021 were made before the amounts were reported as obligated. Questioned Costs: None. Effect: The Authority did not properly follow the requirements of CFR § 905.314 (l). Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to Operations Budget Line Item 1406 draws. Recommendation: The Authority’s staff should familiarize themselves with Capital Fund Program reporting requirements. Management Response: Management will ensure that all future BLI 1406 draws will occur before the amount are reported as obligated in ELOCCS.