Finding Text
Program: 14.872 - Public Housing Capital Fund Requirement: 2 CFR 200.305 requires PHAs to minimize the time federal funds are drawn down to expenditure. The Capital Fund Program provides guidelines of three business days from draw down to expenditure to minimize the interest accrued by the PHA. 24 CFR 905.310 states the PHA shall initiate a fund requisition from HUD only when funds are due and payable, unless HUD approves another payment schedule as authorized by 2 CFR 200.305. Condition: The Housing Authority had drawn down Capital Funds and did not expend within three days. Cause: The PHA employee in charge of draws was unaware of the criteria that the draw needed to be expended within three days. Questioned Costs: $155,268 Effect: The Housing Authority is not in compliance with cash management requirements. Prior Year Finding: This was not a prior year finding. Information: Sampling was not applicable to this finding and systemic problem. Recommendation: It is recommended that the Housing Authority implements appropriate controls over voucher draws to ensure compliance with Public Housing Capital Fund cash management requirements. Management’s Response: Management will draw down Capital Funds on the date the check is written to avoid drawing down too early.