Finding Text
2020-015 Misappropriation of Federal Funds - Improper Receivable
Criteria:
A Housing Authority is required to maintain a repayment plan with a component unit for any costs incurred by the Housing Authority on behalf of the component unit.
Condition:
The Fayetteville Housing Authority has an accounts receivable balance in the amount of $107,360.56 which represents costs incurred by the FHA Development, Inc. but paid by the Fayetteville Housing Authority.
Questioned Costs:
$107,360.56
Effect:
Federal money received by the Fayetteville Housing Authority from the federal sources was misappropriated to subsidize the operations of the FHA Development, Inc..
Cause:
Lack of oversight by Housing Authority management.
Recommendation:
We recommend that the Fayetteville Housing Authority requires the FHA Development, Inc. to immediately repay to the Fayetteville Housing Authority the $107,360.56 in federal money that was misappropriated.