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Finding 2022-004 ? Unallowable Use of Public Housing Program Funds (Significant Deficiency, Non-compliance) Public Housing Program ? Assistance Listing No. 14.850a, Grant Period: Fiscal Year-End June 30, 2022 Criteria The cost principles in 2 CFR Part 200, Sub-part E of the Uniform Guidance describe allowable and unallowable uses of federal award program subsidies. Parts 200.403 and 200.405 prohibit the use of federal award program subsidies to fund expenditures outside of the applicable federal award program. Public Housing Program funds cannot be used to fund expenditures and/or deficits of other federal or non-federal programs. HUD Handbook 7475.1 defines allowable expenditures under Public Housing Program versus expenditures of the Central Office Cost Center (COCC). Equipment purchases of the COCC should not be charged to the Public Housing Program. Condition, Cause, Perspective and Questioned Costs During fiscal year 2022, the Authority charged the purchase of an administrative vehicle, in the amount of $35,256, to the Public Housing Program. Effect Non-compliance with federal requirements with respect to the Public Housing Program. Recommendation We recommend that the Authority review allowable Public Housing Program versus COCC expenditures in HUD Handbook 7575.1 and refrain from charging COCC expenditures to the Public Housing Program. Management?s Response The Authority review allowable Public Housing Program versus COCC expenditures in HUD Handbook 7575.1 and refrain from charging COCC expenditures to the Public Housing Program. The Authority?s Executive Director, Africa Porter, has assumed the responsibility of executing this corrective action as of April 1, 2023.