Finding Text
Finding SA2019-009: Operating Subsidy Payments Supporting Documentation
AL number: 14.850
AL Title: Public and Indian Housing
Name of Federal Agency: Department of Housing and Urban Development
Federal Award Identification number and year: CA010 (2019)
Criteria: 24 CFR section 990 requires Public Housing Authorities (PHA) to provide operating subsidies to public housing projects and document the specific calculation requirements through HUD Form 52723.
Condition: During our audit, we were unable to obtain sufficient documentation for additional operating subsidy payments made to Easter Hill for Richmond Village I, II, and III in the amount of $179,806 made in fiscal year 2019 that staff indicated were for payments that should have been made in fiscal year 2018. Furthermore, the payments in the amount of $179,806 were not supported by the HUD Form 52723 and therefore, we were unable to determine if the subsidy payments were properly calculated in accordance with 24 CFR 990.
Cause: Due to staffing shortage, operating subsidy payments were delayed for a period and then paid in a lump sum without attaching detailed supporting documents.
Effect: The Housing Authority is not in compliance with the specific calculation requirements of HUD Form 52723 as specified in 24 CFR section 990.
Questioned Costs: We question the costs in the amount of $179,806 noted above.
Recommendation: The Housing Authority must develop procedures to ensure that all operating subsidy payments made are supported by HUD Form 52723 and in accordance with 24 CFR section 990.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the Housing Authority.