Finding 1239674 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-30

AI Summary

  • Issue: The Authority missed the deadline to submit AMCCs for two CFP grants, which should have been done within ninety days of the final expenditure date.
  • Impact: This delay could hinder the Authority's ability to accurately record CFP activities and affect future funding opportunities from HUD.
  • Recommendation: Update the checklist for closing CFP grants to include a tracking method for AMCC submission deadlines and monitor it throughout the grant period.

Finding Text

CONDITION/ CONTEXT: The Authority did not submit AMCCs by the reporting deadline, within ninety days of the final expenditure date, for Capital Fund Program (CFP) grant numbers VA36P022501-19 and VA36P022501-21. CRITERIA: Upon expenditures by the PHA of all funds, or termination by HUD of the activities funded in a modernization or development program, a PHA shall submit the closeout forms, including the Actual Modernization Cost Certificate (AMCC), to their local HUD field office for review and approval. PHAs must submit the AMCC within ninety days after the expenditure deadline. QUESTIONED COSTS: There are no questioned costs related to this finding. EFFECT: The delay in submitting closeout forms to HUD could impair the Authority’s ability to properly record CFP activity and participate in future HUD programs, thereby impairing the Authority’s ability to fund capital improvements. CAUSE: The Authority’s process for closing CFP grants did not include an effective mechanism to track and monitor AMCC submittal deadlines. RECOMMENDATION: We recommend that the Authority update its checklist for closing CFP grants to include a method of tracking the deadline for AMCC submittal at the beginning of the grant and monitoring that deadline throughout the grant period.

Corrective Action Plan

The Authority agrees with the finding and is in the process of corrective the issue. The PHA will review CFP grants quarterly to ensure proper and timely reporting on all CFP activities and will work the CFO, Tessa Fitzgerald, to ensure all CFP reporting is timely and in compliance with HUD CFP reporting regulations. Kim Byrd, Executive Director, will be responsible for implementing this corrective action by December 31, 2026.

Categories

HUD Housing Programs Subrecipient Monitoring Reporting

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $3.82M
14.872 PUBLIC HOUSING CAPITAL FUND $813,833
14.850 PUBLIC HOUSING OPERATING FUND $654,659
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $132,783