Finding Text
2020-014 Misappropriation of Federal Funds - Cell Phone Tower
Criteria:
Housing Authorities are permitted to use federal funds and funds derived from federal sources for approved activities only.
Condition:
The Fayetteville Housing Authority issued a forgivable loan to FHA Development, Inc. in the amount of $18,000.00 from monies received in rent from a cell phone tower that is located on top of the high-rise building, which is considered Federal property.
We noted a Board Resolution (#1194) stating that the monies received from the rental of the top of the high-rise building to be considered non-federal money.
Questioned Costs:
$18,000.00
Effect:
Because the cell phone tower sits atop the Hillcrest Tower building, which is part of the Fayetteville Housing Authority property, any income derived from this source is considered to be federal money.
Cause:
Lack of oversight by Fayetteville Housing Authority management.
Recommendation:
We recommend that the Fayetteville Housing Authority requires FHA Development, Inc. to immediately repay to the Fayetteville Housing Authority the $18,000.00 in federal money that was misappropriated.