Finding 529268 (2024-001)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2024
Accepted
2025-03-21

AI Summary

  • Core Issue: The Housing Authority failed to obligate 2019 CFP grant funds within the required 24-month period.
  • Impacted Requirements: Non-compliance with HUD regulations regarding timely fund obligation for Capital Fund grants.
  • Recommended Follow-Up: Implement internal controls to ensure timely obligation of all future grant funds.

Finding Text

Unless an extension is approved by HUD, a PHA must obligate at least 90 percent of each Capital Fund grant, including formula grants, DDTF, RHF, and natural disaster grants within 24 months of the funds of becoming available to the PHA for obligation. For emergency grants, including Safety and Security Grants the PHA must obligate at least 90 percent within 12 months of the funds becoming available. The funds become available when the HUD executes the ACC Amendment (24 CFR section 905.306). The Housing Authority did not obligate the funds within the time frame above for CFP Grant Year 2019. The 2019 CFP grant was not obligated within the 24 month allowable period. Due to changes in staff the funds were not obligated properly. The Housing Authority is not incompliance with the CFP grant contract. The Housing Authority should implement internal controls to ensure all funds are obligated within the correct period of time Management Agrees

Corrective Action Plan

Audit Finding 2024-001: The Authority did not obligate the funds within the time frame required for CFP Grant Year 2019. The Housing Authority of the City of Needles was notified by HUD on 06/18/24 that we were noncompliant with the obligation requirements for our 2019 CFP grant. As a result, our 2024 CFP grant was reduced. Our Acting Finance Director, Barbara Dileo and our Housing Manager, Angelica Deermer took a class on 02/13/25 that reiterated the information on the proper timing for obligating and drawing down funds. This finding has been corrected effective 02/14/25.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 529269 2024-002
    Significant Deficiency
  • 1105710 2024-001
    Significant Deficiency
  • 1105711 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $376,334
14.850 Public Housing Operating Fund $299,182
14.871 Section 8 Housing Choice Vouchers $195,290