Finding Text
Criteria: The U.S. Department of Housing and Urban Development Capital Fund Guidebook 2016 states that the PHA can draw funds up to, but not more than, 3 days in advance of a valid expense and should draw the amount needed to cover such costs. Condition: The PHA did not spend CFP money that was drawn down within the 3 day window. Context: We noted that the PHA has deferred CFP revenue account of $43,722, which indicates that the CFP money drawn down from the 2022 CFP year had not yet been spent. Cause: The PHA had a lack of proper internal control procedures surrounding the cash management of the CFP program. Effect: The lack of controls surrounding the cash management caused the PHA to have unspent CFP money at year end. Recommendations: Establish proper CFP procedures to ensure proper handling of CFP draw downs. Management Views: Agrees with auditor finding.