Kankakee County Housing Authority

Item 2023-001 - Operating Budget Program: Public and Indian Housing Requirement: A budget must be developed and maintained for each Public Housing project, including analysis actual revenues and expenses. Prior to the beginning of its fiscal year, the budget must be reviewed and approved by Board resolution and submitted to HUD. Condition: The 2023 operating budget was not submitted and approved before the beginning of the fiscal year. Questioned Cost: Not applicable. Cause: The operating budget was not submitted and approved before the beginning of the fiscal year. Effect: The budget approval is not in compliance with HUD regulations. Prior Year Finding: This was not a prior year audit finding. Information: Sampling was not applicable to this finding and systematic problem. Recommendation: We recommend that the Board of Commissioners be provided with a Public Housing budget in adequate time to approve within HUD guidelines. Management’s Response: The Executive Director will start the budget process timely and present to the Board at the May meeting each year.

The Executive Director will start the budget process timely and present to the Board at the May meeting each year.

2022-001

Item 2022-001 - Operating Budget Program: Public and Indian Housing Requirement: A budget must be developed and maintained for each Public Housing project, including analysis actual revenues and expenses. Prior to the beginning of its fiscal year, the budget must be reviewed and approved by Board resolution and submitted to HUD. Condition: The 2022 operating budget was not submitted and approved before the beginning of the fiscal year. Questioned Cost: Not applicable. Cause: The operating budget was not submitted and approved before the beginning of the fiscal year. Effect: The budget approval is not in compliance with HUD regulations. Prior Year Finding: This was not a prior year audit finding. Information: Sampling was not applicable to this finding and systematic problem. Recommendation: We recommend that the Board of Commissioners be provided with a Public Housing budget in adequate time to approve within HUD guidelines. Management?s Response: The Executive Director will start the budget process timely and present to the Board at the May meeting each year.

The Executive Director will start the budget process timely and present to Board at the May meeting each year.

Item 2019-001 - Capital Funds for Operating Costs Program: Capital Funds Requirement: Capital Funds transferred to operations (BLI 1406) are not considered obligated until the PHA has budgeted and drawn down the funds Condition: The PHA was obligating the full amount of capital funds transferred to operations at the beginning of the year but drawing down the funds monthly throughout the year. Questioned Costs: N/A Cause: The full amount of capital funds transferred to operations was obligated at the beginning of the year. Effect: The LOCCS obligated date is not the same as the voucher request date which is required per 24 CFR section 905.314(1). Prior Year Finding: N/A Information: Sampling was not applicable to this finding and systematic problem. Recommendation: We recommend the PHA obligate the capital funds transferred to operations the same day they submit the voucher request in LOCCS. Management?s Response: Going forward the HA will follow the HUD compliance supplement and obligate funds separately as they make draws for operations throughout the year.

Going forward the HA will follow the HUD compliance supplement and obligate funds separately as they make draws for operations throughout the year.