Finding Text
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157
Auditor non-compliance code: H – Unauthorized distribution of project assets
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: Not applicable
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $695
Statement of condition 2023-001: During the year ended September 30, 2023, the Project paid expenses totaling $695 on behalf of an entity under common management without HUD approval.
Criteria: Pursuant to the Regulatory Agreement (form HUD-92466), the Project shall only withdrawal Project funds for expenses of the Project unless approved by HUD.
Effect: Management paid invoices relating to another project in the amount of $695, which exceeded surplus cash by $695. At September 30, 2023, the Project's operating cash account is understated by $695.
Cause: Management inadvertently paid invoices relating to another project with a similar name.
Recommendation: Management should have the other project reimburse $695.
Management's response: Management concurs with the finding and recommendation. On December 18, 2023, the finding was cleared as $695 was repaid to the Project.