[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR943.130]

[Page 394-395]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 943--PUBLIC HOUSING AGENCY CONSORTIA AND JOINT VENTURES--Table of Contents
 
                          Subpart B--Consortia
 
Sec. 943.130  What are the responsibilities of participating PHAs?

    (a) Responsibilities, generally. Despite participation in a 
consortium, each participating PHA remains responsible for its own 
obligations under its ACC with HUD. This means that the PHA

[[Page 395]]

has an obligation to assure that all program funds, including funds paid 
to the lead agency for administration by the consortium, are used in 
accordance with HUD regulations and requirements, and that the PHA 
program is administered in accordance with HUD regulations and 
requirements. Any breach of program requirements with respect to a 
program covered by the consortium agreement is a breach of the ACC with 
each of the participating PHAs, so each PHA is responsible for the 
performance of the consortium.
    (b) Applicability of independent audit and performance assessment 
system requirements to consortia. Where the lead agency will manage 
substantially all program and activities of the consortium, HUD 
interprets financial accountability to rest with the consortium and thus 
HUD will apply independent audit and performance assessment requirements 
on a consortium-wide basis. Where the lead agency will not manage 
substantially all programs and activities of a consortium, the 
consortium shall indicate in its PHA Plan submission which PHAs have 
financial accountability for the programs. The determination of 
financial accountability shall be made in accordance with generally 
accepted accounting principles, as determined in consultation with an 
independent public accountant. In such situations, HUD will apply 
independent audit and performance assessment requirements consistent 
with that determination. With respect to any consortium, however, HUD 
may determine (based on a request from the consortium or other 
circumstances) to apply independent audit and performance requirements 
on a different basis where this would promote sound management.