Finding Text
Finding Reference Number: 2023-02
Title and Federal Assistance Listing Number of Federal Program:
Section 202 Capital Advance and PRAC, 14.157
Type of Finding: Federal Award Finding
Finding Resolution Status: Unresolved
Information on Universe Population Size: n/a
Sample Size Information: n/a
Identification of Repeat Finding and Finding Reference Number: Not applicable
Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of project
funds.
Statement of Condition: The project paid expenses for an adjacent property.
Cause: The Corporation paid non-project expenses from Project funds.
Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement.
Auditor Non-Compliance Code: H - Unauthorized Distribution of Project Funds
Questioned Costs: $899
Reportable Views of Responsible Officials: We agree that the Corporation paid amounts from Project funds for
non-project expenses.
Context: Not applicable
Recommendation: Expense allocations should be closely monitored to ensure Project funds are not used for nonproject
expenses.
Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's
assessment.
Response Indicator: Agree
Completion Date: 12/31/2024