Finding 509762 (2024-001)

Finding 2024-001 – Capital Funds Draws for Operations Program: Public Housing Capital Fund Requirement: Capital Funds drawn for operations (BLI 1406) are not considered obligated until the Housing Authority has budgeted and drawn down the funds. Condition: In 2023 the Housing Authority was obligating the amount budgeted for operations (BLI 1406) when the budget was adopted but before the voucher request date. Questioned Costs: N/A Cause: The full capital fund grant was obligated before the obligation date but the actual voucher draws were not made until a later date. Effect: The LOCCS obligated date is not the same as the voucher request date which is required per 24 CFR section 905.314(1). Prior Year Finding: N/A Information: Sampling was not applicable to this finding and systematic problem. Recommendation: We recommend that the Housing Authority obligate the capital funds drawn for operations the same day they submit the voucher request in LOCCS. Management’s Response: The Housing Authority has already implemented controls beginning in January 2024 that operation draws (BLI 1406) are obligated & expensed the same day the voucher is submitted to LOCCS.