130 likes | 136 Views
This resource provides information on program finance, audits, and internal controls in the context of Low-Rent Public Housing, Section 8 Housing Choice Vouchers, and Public Housing Operations. It covers topics such as the annual submission of operating subsidy calculation, funding periods, eligibility criteria, HCV program operations, audit requirements, and internal controls.
E N D
Program Finance, Audits & Internal Controls Julie Miles, Financial Analyst HUD-Kansas City, KS 913-551-5529
Program Finance Low-Rent Public Housing Section 8 Housing Choice Vouchers
Public Housing Operations • Annual Submission of Operating Subsidy Calculation • Operating Subsidy Funded on Calendar Year Basis • PHA Draws Funds from the Line of Credit Control System (LOCCS)—Monthly Limit • Eligible for Costs to Operate Public Housing • Operating Funds Can Only Pay for Low-Rent Program Costs—Cannot Transfer or Loan Funds to Any Other Program, Including Section 8 Housing Choice Voucher Program
Operating Subsidy Formula • Funding Period 1/1 to 12/31 • Reporting Period 7/1 to 6/30 before Funding Period • CY 2007 PHA Level—1 Calculation • CY 2008 & Future Project/AMP Level—Multiple Calculations • Expense Level Based on Project Characteristics • Less Project Rent (Frozen at 04 Level CY07 to CY09) • Plus Project-Share of Add-ons • Equals Subsidy Eligibility • Less Proration
Section 8 Housing Choice Voucher (HCV) Program Operations • 2-Part HCV Grant • Administrative Fee • Housing Assistance Payment (HAP) • Must Track Admin & HAP Separately • Funded on Calendar Year Basis • Leasing & Expense Data Reported to the Voucher Management System (VMS)
HCV Admin Fee • Eligible for Admin Costs & HAP Costs in Excess of HAP Grant (up to Baseline) • CY 2009 Funding To Be Announced • CY 2008 Funding Based on Vouchers Under HAP as of the First Day of the Month • Calculated Quarterly Based on VMS – Subject to Proration • Cannot Use for Over-Leasing (Vouchers Exceeding Annual Baseline)
HCV HAP • Eligible for HAP Costs Only • CY 2009 Funding To Be Announced • CY 2008 Funding Based on VMS Data for October 06 to September 2007 Plus Inflation • Cannot Use for Over-Leasing (Vouchers Exceeding Annual Baseline) • 2004 & Prior—HAP Funding Adjusted at Year-End to Actual Cost (Year-End Settlement) • 2005—First Year HAP Budget-Based, No Adjustment to Actual Cost
Reserves/Net Assets • Must Track Admin (Unrestricted) & HAP (Restricted) Separately • 2003 & Prior Reserves—Use For Other Housing Purposes Permitted By State & Local Law • 2004 & After—HAP Reserves Only for Provision of Section 8 Tenant-Based Rental Assistance, Including Related Development
Audits & Internal Controls Audit Requirements Financial Assessment Internal Controls
Requirements • OMB Circular A-133 Requires Single Audit if PHA Expends $500K or More in Federal Funds • Optional Non-A-133 Audit if Expends Less Than $500K (Unless Audit Required by State Law) • Within 9 Months of FYE: • Submit Electronic Copy of Audit to Real Estate Assessment Center (REAC) • Submit Paper Copy of Audit and Management Letter, if Noted, to Field Office
Requirements (continued) • Audit May Include: • Specific Issues • Earlier Submission Date • GAAP Flyer #6 Procuring An Audit • http://www.hud.gov/offices/reac/pdf/gaapflyer6.pdf
Assessment • FASS Score Based on Unaudited Financial Submission to REAC • FASS Score Adjusted Based on Audited Financial Submission to REAC • Account Balance Changes • Audit Opinion Penalties • Audit Finding Penalties
Internal Controls • Document Expectations of Staff • Track & Safeguard Assets • Checks & Balances • Board Oversight