Finding Text
ALN 14.850 – Public and Indian Housing Program – Activities Allowed, Unallowed
Condition and Criteria:
24 CFR 990.280(b) permits the use of Public and Indian Housing Program (PIH) for specific project related operating expenses. It does not permit such amounts to be loaned to related parties.
In prior years, the Authority had loaned PIH monies to related parties. As of September 30, 2023, $98,663 of PIH loans remain outstanding to discretely presented component units of the Authority. $126,892 remains outstanding to other programs of the Authority, $100,642 of which was loaned to the Business Activities program which houses the Authority's non-federal funds.
Amount of Questioned Costs:
$199,305
Context:
The Authority’s Public Housing Program has miscellaneous receivables from Edgefield Senior Housing, LLC, Valley Homes, LLC, and other related parties in the amounts of $9,152, $22,459, and $67,052, respectively. The Public Housing Program is also due $100,642 from the Business Activities program.
Cause:
Management of the Authority in prior years (who were different individuals than the current management of the Authority) either did not understand or did not follow federal guidelines.
Effect:
Public Housing monies were used for unallowed purposes.
Auditor’s Recommendation:
The management of the Authority should continue to pursue collection of these amounts.
Grantee Response:
Management acknowledges the finding and will follow the auditor’s recommendation. The current management of the Authority understands these federal guidelines, has stopped any further loans of Public Housing monies to related parties or other programs and is actively pursuing collection efforts.