Improper Charging of Maintenance Expenses to Subsidy Fund
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency kept paying for maintenance of a program that ended in 2022 using money meant for subsidies, instead of using its own operating funds. This is not allowed and misuses the subsidy money.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"The FMD continuously charges to subsidy fund HAPCV the maintenance expenses of the BP2 Program despite its termination effective August 1, 2022. The AD records the maintenance of the BP2 Program site by debiting Financial assistance/subsidy – others expense charged to subsidy fund instead of the appropriate expense account charged to corporate fund as operating expenses."