Finding Text
2022-001 Description Criteria After subsidy (operating) is calculated at a project level, operating subsidy can be transferred as the PHA determines during the PHA's fiscal year to another ACC project(s) if a project's financial information, as described more fully in 240 CFR ? 990.280, produces excess cash flow, and only in the amount up to those excess cash flows. 240 CFR ? 990.205. Condition During our audit, the Authority transferred PHA cash and charged asset management fees in AMP 2 and AMP in excess of the excess cash amount from the 2021 audited numbers. Context AMP 4 and AMP 10 have issues cash flowing and rely on the other AMPS to transfer excess cash every year. In 2021, the other AMPs had less excess cash, so were unable to subsidize AMP 4 and AMP 10 like normal. The Authority did not detect the cash flow issue until after the fiscal year ended. Resulting in noncompliance with the program's rules Cause Controls were not followed to ensure fungibility rules between each project were followed Effect The authority unallowably transferred $203,000 to other AMPs Recommendations Perform monthly reconciliations to ensure fungibility is properly maintained Management Views See Corrective Action Plan