Management’s Corrective Action Plan
Program Name: Name of Federal Program or Cluster
CFDA Number:14.871
2023-002: Interprogram Due To/Due From Activities
Criteria: According to PHA Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the cost of another program. HUD views Due To’s and Due From’s reported in a PHA ‘s Federal programs as possible indicators of noncompliance.
Condition: The Authority has inter-fund receivables and payables that have not been repaid as of fiscal year-end. This results in certain programs having a negative cash balance as of the fiscal year end.
Context: The Authority’s reported a ($33,461 in HCV program and $154,268 Mainstream) interfund payable due to Business Skill Center (nonfederal program ) which is a significant red flag for HUD reviewers.
Management Response: The $33,461 due from the Housing Choice Voucher (HCV) program to Business Skill Center represents the use of non-federal funds to cover HCV’s monthly payroll and benefit expenses, which typically range from $30,000 to $35,000. These expenses are temporarily paid by Business Skill Center and reimbursed within 30 days upon receipt of HCV Administrative Fee funding from HUD.
The $154,268 due from the Mainstream program to Business Skill Center non-federal funds resulted from a funding shortfall that occurred during the transition of Mainstream Vouchers from the Dania Housing Authority to the Deerfield Beach Housing Authority. During this period, the Deerfield Beach Housing Authority had to apply for and await the disbursement of
Mainstream Shortfall funds from HUD. As these funds were received over a period of 3 to 4 months, the Business Skill Center covered costs using non-federal funds, which were later reimbursed.