Finding Text
Criteria: PHAs may use Housing Choice Voucher program funds only for HAPs to participating owners, and for
associated administrative fees (24 CFR section 982.151 and 982.152) Housing Assistance
Payments(HAP) may not be used to cover administrative expense, nor may HAP (including RNP) be
loaned, advanced, or transferred to other components units or other program. Condition: The interfund receivables and payables have not been repaid in several year. The balance continues
to grow each year.
Context: The Housing Choice Voucher Program's financial statement reflected a net interfund receivable of
$3,350,212, representing more than 12 months of the program's monthly operating expenses.
Cause: The Authority was not effectively monitoring and managing interfund program balances in order to
ensure that program funds were not used for non-program purposes. Effect: The financial position of the Housing Voucher Program is at least temporarily impaired by the use of
program funds for non-program purposes.
Recommendations: We recommend that Authority utilize unrestricted cash reserves to repay the Housing Voucher
Program and implement better cash management practices to eliminate future issues.
Management Views: Management agrees with the finding see corrective action plan