Finding Text
Item 2023-002 - Capital Fund Draws 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 full amount of capital funds transferred to operations at the beginning of the year but drawing down the funds monthly throughout the year.
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 the capital funds transferred to operations the same day the voucher request is submitted in LOCCS.