Finding Text
Federal Program: 14.850 - Public Housing
Criteria: Public Housing Authorities are disallowed from using Operating Funds as funding to other nonfederal programs.
Condition: Public Housing Authorities have pooled cash and the COCC has had a negative cash balance over the past fiscal years.
Cause: The Housing Authority is using public housing reserves to fund the COCC shortfall. The COCC is short on cash due to large receivables from tax credit properties.
Effect: The Housing Authority is not in compliance with Public Housing Operating Fund compliance requirements regarding the use of operation funds.
Questioned Costs: Not applicable.
Information: Sampling was not applicable to this finding and is a systematic problem.
Prior Year Finding: Not a prior year finding.
Recommendation: It is recommended that the Housing Authority implements appropriate controls over Public Housing cash to ensure the proper use of operating funds.
Management’s Response: In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.