Finding Text
Finding number: 2022-003 Federal program: 14.872 Public Housing Capital Fund (CFP) Category: Compliance - Cash Management Criteria or specific requirement: 24 CFR section 570.489 (c)(1) establishes that units of general local governments shall use procedures to minimize the time elapsing between the transfer of funds by the federal government and the disbursement made by the grantee. Condition: In testing compliance with the cash management requirement related to the time elapsed between the receiving of the request of funds from the federal government and the disbursement of funds; we observed that two (2) out of sixty (60) files requests of funds from the Capital Fund did not comply with the maximum three days of disbursement. In one instance, the days were exceeded by eight (8) days and in other instance by five (5) days. Questioned costs: No questioned costs were identified. Perspective information: We selected for testing sixty (60) requests from the Capital Fund out of 296 requests made during the year ended June 30, 2022. Cause: There was a lack of coordination by certain employees in charge of monitoring the time that elapsed between the cash requests and the disbursements of funds. Effect: In these instances, the Administration did not follow the established procedures to comply with 24 CFR, Section 570.489 (c) (1) to avoid requesting excess of cash. Recommendation: We recommend management to strengthen its disbursements procedures to minimize the time between the transfer of funds by the federal government and disbursements made by the PRPHA. Views of responsible officials and planned corrective action: See Administration?s corrective action plan.