Finding Text
Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872)
Criteria: Federal Code of Regulations, CFR § 905.314 (l) requires the Authority to first drawdown Budget Line item 1406 Operations before amounts are obligated.
Condition: During the year, the Authority had one Operations draw from CFP 2022 in the amount of $132,147. The Operations draw was made after amounts were reported as obligated in ELOCCS.
Questioned
Costs: None.
Effect: The Authority did not properly follow the requirements of CFR § 905.314 (l).
Cause: The Authority did not have an adequate understanding of the Capital Fund Program requirements as related to Operations Budget Line Item 1406 draws.
Recommendation: The Authority’s staff should familiarize themselves with Capital Fund Program reporting requirements.
Management
Response: Management will ensure that future 1406 Operations draws will be made before amounts are reported as obligated.