Finding Text
Federal Award Finding - 2023-002 – Cash Management
Criteria: 24 CFR section 905 requires a PHA to have an eligible operating fund expenditure that is due and payable within 3 days of disbursing funds from the capital fund.
Condition: The Authority did not always make disbursements within three business days of advances from the U.S. Treasury.
Cause: The Authority was not fully aware of the compliance requirements of the Capital Fund Program.
Effect: The Authority did not maximize the efficiency of fund transfers from the U.S. Treasury.
Recommendation: The Authority should ensure that drawdowns from the U.S. Treasury are done in a manner that does not violate 31 CFR Part 205. Drawdowns should either be made on a reimbursement basis or when management can ensure subsequent disbursement within three business days.
Questioned Costs: None
View of Responsible Officials: Management agrees with the finding.