Finding 1074631 (2023-002)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-09-25

AI Summary

  • Core Issue: A portion of the sponsor loan, totaling $130,019, was repaid without required HUD approval.
  • Impacted Requirements: HUD mandates that approval must be obtained before any sponsor loan repayments.
  • Recommended Follow-up: The Sponsor should collaborate with HUD to assess whether the $130,019 needs to be reimbursed to the Project.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Hill Housing Facility - FINDING 2023-002: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 Condition: The Project repaid a portion of the sponsor loan payable (Due to Related Party) without obtaining HUD approval. The total amount of the unauthorized sponsor loan payment was $130,019. Criteria: HUD approval should be obtained prior to making a sponsor loan repayment. Effect: The Project's cash balance is $130,019 less than it should be. Context: The Sponsor loan payable at December 31, 2023 was tested. The test determined that a portion of the sponsor loan was repaid without obtaining HUD approval. Questioned Costs - $130,019, Cause: The Project repaid a portion of the sponsor loan without obtaining HUD approval. Recommendation: The Sponsor should work with HUD to determine if the $130,019 needs to be paid back to the Project. Views of Responsible Officials and Planned Corrective Actions: The Sponsor will work with HUD to detemine if the $130,019 needs to be paid back to the Project. Total - Department of Housing and Urban Development - $130,019, Non-compliance code - R

Categories

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $15.47M
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $878,429
14.195 Project-Based Rental Assistance (pbra) $779,449