Finding Text
2022-001 Operating Budget Revision Not approved by Board of Commissioners for Operating Expenses that exceeded the Originally Approved Budget (Special Tests and Provisions) Criteria: In accordance with the Authority?s Annual Contributions Contract (ACC), the Authority is required to prepare and approve a Public Housing Operating Budget Revision for any operating expenses not previously budgeted for. Condition: The Authority?s actual expenditures exceeded its budgeted expenditures by $255,726. Questioned Costs: None. Effect: The Authority had $255,726 in unbudgeted operating expenditures. Cause: The Authority did not have procedures in place to review actual expenditures for the year to the amount of budgeted expenditures. Recommendation: The Authority should establish a process whereby the operating expenditures are reviewed by the Authority?s Board of Commissioners to determine if a budget revision is needed to be approved before the end of its fiscal year. Management Response: We will implement a process to review operating expenditures frequently to ensure that operating expenditures do not exceed approved budgeted expenditures. When actual expenditures exceed budgeted expenditures, the Authority will approve a budget revision to cover actual expenditures.