Finding 51965 (2022-001)

2022-001 - Capital Funds for Operating Costs Program: Public Housing Capital Fund Requirement: Capital Funds transferred to operations (BLI 1406) are not considered obligated until the HA has budgeted and drawn down the funds. Condition: The HA was obligating the amount for operations prior to doing the draw for operations. Questioned Costs: N/A Cause: The full amount of capital funds transferred to operations was obligated at the beginning of the year. 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 the HA obligate the capital funds transferred to operations the same day they submit the voucher request in LOCCS. Management?s Response: Going forward the HA will follow the HUD compliance supplement and obligate funds separately as they make draws for operations throughout the year.