Core Issue: Funds from the Homekey Round 2 program were not held in an interest-bearing account, violating compliance requirements.
Impacted Requirements: All received funds must be maintained in an interest-bearing account as per federal program guidelines.
Recommended Follow-up: Transfer any remaining funds into an interest-bearing account to ensure compliance moving forward.
Finding Text
• Information on the federal program: California Department of Housing and Community
Development Finding 2023-2: Pass-through County of
Ventura: Homekey Round 2
• Criteria or specific requirement: Received funds were to be held in an interest-bearing
account.
• Condition: Funds were not held in an interest-bearing account.
• Questioned costs: No matters were reported
• Context: No matters were reported
• Effect: Not in compliance due to funds not being held in an
interest-bearing account.
• Cause: Funds were not held an interest-bearing account.
• Recommendation: Remainder of funds should be transferred into an
interest-bearing account.
• Management’s response: The majority of Homekey Round 2 funds were spent upon receipt in order to satisfy a bridge loan to purchase
the subject property.
Corrective Action Plan
Finding: 2023-2
MESA's Accounting Manual has been amended to include the following language under the Division of Responsibilities: Operations Director reviews all incoming and outgoing invoices. Upon review and approval of an invoice, the Operations Director signs and dates the invoice, and presents it to the Executive Director for review. The Executive Director reviews all invoices and signs and dates all invoices upon approval prior to payment.
Categories
Procurement, Suspension & DebarmentMatching / Level of Effort / Earmarking