Finding Text
Finding 2024-1
Federal Agency: Department of Housing and Urban Development (HUD)
Programs effected: (CFDA #14.872) Capital Fund Program and (CFDA#14850)
Criteria: Per HUD regulations, draw-downs from the LOCCS system should be spent on the requested invoices within three business
days of receipt of the funds. Also, there should be supporting documentation for all funds requested.
Condition: The Authority paid contractor and other associated invoices before submitting requests for payment in. In addition, when
funds were received, payment occurred more than three days after deposit. LOCCS drawdowns did reflect actual payment totals to
vendors, but not all drawdowns could be traced to particular payments.
Effect: The Authority is not in compliance with the HUD requirements for the fiscal requirements for the capital fund program. Other
program funds were used for payment pending drawdown from LOCCS.
Cause: The Authority recently experienced turnover in both the executive director and finance director positions.
Recommendation: The Authority should drawdown and expend LOCCS funds in three business days, Drawdown requests should be
reconciled to vendor invoicing.
Corrective Action Plan (Prepared by Management): The Housing Authority will reconcile LOCCS requests to vendor billing and
expend funds within the three-day period.
Prior Year Findings:
Findings 2023-1 and 2023-3 have been resolved. The Authority has completed depository agreements with the relevant financial institutions
and developed an allocation plan using time studies conducted during the year. Finding 2023-2 is included above as 2024-1 as the Authority is
continuing to work to correct the issue.