Finding 597050 (2022-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-26

AI Summary

  • Core Issue: The Authority failed to budget for debt service, leading to overspending.
  • Impacted Requirements: Compliance with NC Local Government Commission's mandate to budget all expenditures.
  • Recommended Follow-Up: Implement monthly or quarterly reviews of budget versus actual spending and amend the budget as necessary.

Finding Text

2022-001: Statement of Condition ? For the Low Rent Public Housing program, we reviewed the budget for spending authorizations. During this review, it was discovered that the Authority had not budgeted for debt related monies spent for the year ended June 30, 2022. The Authority did not budget for debt service, resulting in unfavorable budget variances. Criteria ? The NC Local Government Commission states that the Authority must budget expenditures. Effect ? This violation resulted in an overspending. Cause ? The Authority did not follow proper budgeting procedures. Recommendation ? The Authority should review budget versus actual expenditures on a monthly or quarterly basis and should amend the budget as spending needs arise. Identification of a repeat finding ? This is a repeat finding from the immediate previous audit, 2021-001.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $1.13M
14.872 Public Housing Capital Fund $657,945
14.870 Resident Opportunity and Supportive Services - Service Coordinators $63,964