Finding Text
Questioned Costs: None. Criteria:The U.S. Department of Housing and Urban Development Capital Fund Guidebook states that the PHA can draw funds up to, but not more than, 3 days in advance of a valid expense and should draw the amount needed to cover such costs. Condition:The PHA did not spend CFP money that was drawn down within the 3 day window. Context:We noted that the PHA has deferred CFP revenue account of $24,399, which indicates that the CFP money drawn down from the 2022H CFP grant had not yet been spent. Cause:The PHA had a lack of proper internal control procedures surrounding the cash management of the CFP program. Effect:The lack of controls surrounding the cash management caused the PHA to have unspent CFP money at year end. Recommendations:Establish proper CFP internal controls to ensure proper handling of CFP draw downs. Fund drawn after payment or very near payment date of related purchases. Management Views:Management Agrees. See corrective action plan.