Finding Text
The former Executive Director was terminated effective January 9, 2022. The current Executive Director was named to this position effective November 2, 2021. Section 8 Housing Choice Voucher Program Program-CDFA#14.871, Low Rent Program-CDFA#14.850-Allowable Cost/Principles 2022-001-Significantly large interfund account needs to be reduced Criteria and specific requirement In small and medium-sized PHAs, there is a required allocation of expenses between programs. It is often not practical to maintain separate bank accounts and pay each program?s expenses out of its individual bank account. As a result, usually there are interfund payables and receivables between the accounts/programs. Ideally, the interfund amounts should be kept to a minimal amount, if not paid in full at the start of every month. The danger is that the larger the interfund amount is and/or grows, the more difficult it may be to pay off the interfund payable amount. The practical effect is if this happens, one fund is paying the expenses of another fund on a permanent basis. This results in a ?transfer? between the Housing Choice Voucher and Low Rent programs, which federal regulations do not allow. Condition Found At September 30, 2022, the Low Rent Program owes the Housing Choice Voucher Program $165,833. Context The significant interfund balance has existed for several years. Cause Apparent oversight. Effect The possibility exists that the fund that owes the funds might be unable to repay the balance. Recommendation to prevent future occurrences The interfund balance should be paid off as soon as possible. View or Responsible Official The entire balance was paid off subsequent to year-end. Section 8 Housing Choice Voucher Program-CDFA#14.871-Special Tests