Audit 381213

S3800-010 Finding reference number 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 and Internal Control over Compliance S3800-016 Finding resolution status Complete 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 project funds may be used only for expenses that are reasonable and necessary to the operation of the project. S3800-030 Statement of condition The Organization repaid construction payables to a related party from operating cash. S3800-032 Cause Understanding of reasonable and necessary obligations of the 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 H - Unauthorized distribution of project assets S3800-040 Questioned costs $ 61,198 S3800-037 Property associated with the finding 054-EE-096 S3800-038 Questioned costs $ 61,198 S3800-045 Reporting views of responsible officials Management agrees S3800-080 Recommendation Management should update their definition of reasonable and necessary expenses and check with HUD prior to repaying costs that may not be eligible. 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 October 31, 2024 S3800-150 Response The funds were repaid during the current year.