Audit 381206

S3800-010 Finding reference number 2024-001, 2025-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding S3800-016 Finding resolution status Unresolved S3800-017 Information on universe population Not applicable S3800-018 Sample information Not applicable S3800-019 Identification of repeat finding and finding reference number Not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that HUD approval is required for cash advances to a related party. S3800-030 Statement of condition The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD S3800-032 Cause Cash needs of the related party non-profit HUD project. S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary obligations of the project S3800-035 Auditor non-compliance code G - Unauthorized loans from project funds S3800-040 Questioned costs $15,000 S3800-037 Property associated with the finding 073-EE075 S3800-038 Questioned costs $15,000 S3800-045 Reporting views of responsible officials Management agrees S3800-050 Context Not applicable S3800-080 Recommendation Management should monitor internal controls and receive HUD approval. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date 12/31/2025 S3800-150 Response The management agent will repay the funds on behalf of the related party housing project until that property has funds available, pending HUD approval.