Finding Text
2022-1 Condition: Deficit in Central Office Cost Center (COCC) The Authority continued to run a deficit in the Central Office Cost Center (COCC) primarily because of legacy costs (Health Insurance and Pension costs) associated with former employees, as required by long term state contracts. The Central Office Cost Center (COCC) has expended Low Income Public Housing (LIPH) funds to support the COCC operations in violation of Federal Rules and Regulations. Through the year ended March 31, 2022, the Authority has accumulated in excess of $3,713,122, in Central Office Cost Center (COCC) administrative operating costs above those normally covered by management fees, capital asset fees and bookkeeping fees. With the RAD conversion and corresponding sale of capital assets, this situation will be rectified with the final conversion of RAD. CFDA #: 14.850 Cause/Effect: Lack of oversight and long-range planning in accordance with HUD's requirements. Criteria: OMB-87 regarding eligible and ineligible costs. Recommendation: We recommend that the Authority continue to take the necessary steps budget and plan for future legacy costs. Reply: The Authority's continued conversion to private based ownership via tax credits and Rental Assistance Demonstration will ease the burden of capital need. Once all our properties are converted this issue will not exist.