HOUSING AUTHORITY OF THE CITY OF CROSSETTLocal Government

2025-002 Noncompliance with Period of Performance – CARES Funding Criteria: The CARES Act relief programs required that all expenses must have been incurred due to the COVID-19 emergency, and that the funds should be expended by the later extended deadline of December 31, 2022. Unexpended or unobligated funds at the end of the period must typically be returned to the federal government. Condition: During the audit period, it was noted that the housing authority had Deferred Credits-CARES Act that had been previously drawn down $15,252.71 in advance funds for the program. As of the fiscal year end, $15,252.71 remained unexpended and unreconciled. The entity did not return the excess funds to the grantor within the required timeframe and did not properly document any authorized carryover. Questioned Costs: $15,252.71 Effect: Noncompliance with federal requirements. Cause: Due to the prior management, there was inadequate monitoring of grant expenditures, lack of timely reconciliation procedures, and insufficient oversight of grant closeout. Recommendation: Implement monthly drawdown reconciliations aligned with actual expenditures, as well as establishing a formal closeout checklist. Furthermore, the Housing Authority should return the unexpended funds of $15,252.71 to the federal government.