Finding Text
Finding 2022-001: Federal Program Funds Utilized for Non-Federal Programs (Material
Weakness, Material Noncompliance)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Public and Indian Housing
Federal Assistance Listing Number: 14.850
Compliance Requirement: Allowable Costs
Criteria: Federal guidelines, HUD regulations, and specific grant provisions mandate that federal
funds are not commingled with other federally funded programs and that the funds for one program
not be utilized to pay for the costs of another program.
Condition: Based on the balance of the Public Housing interfund receivable, it appears that funds
from Public Housing have been used to subsidize the Central Office Cost Center (COCC).
Context: As of June 30, 2022, Public Housing had an interfund receivable of $2,444,929.
Effect: The Authority risks violating federal funding regulations as it is unable to identify a nonfederal
source to cover the costs of operations and avoid using other program’s cash flow to cover
the costs of operating the COCC.
Cause: The Authority does not have enough cash on hand to adequately fund the COCC’s
operations.
Recommendation: The Authority should locate additional sources of non-federal funds or reduce
costs sufficiently so that the program can have enough cash to cover ongoing operations.
Repeat Finding: This is a repeat finding.
Views of Responsible Officials: The Authority agrees with the finding.