Finding 1079626 (2024-001)

-
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2024-10-21

AI Summary

  • Core Issue: Delay in assistance payments led to the management agent needing to loan $20,000 to maintain services.
  • Impacted Requirements: Lack of HUD approval for the additional funds created financial strain on the project.
  • Recommended Follow-up: Review processes for timely assistance payments and ensure proper communication with HUD for future funding needs.

Finding Text

Due to a delay in assistance payments, the management agent (a releated party to the project sponsor) was forced to loan the project funds to avoid interruption in services. The management agent was not successful in getting HUD's approval for the additional funds to cover the deficit. When assistance payments were finally received, the project repaid the related party loan in the amount of $20,000.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $4.63M
14.239 Home Investment Partnerships Program $300,000