Finding 1080302 (2024-001)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for Persons with Disabilities (Section 811) Asset Listing Number: 14.181 Award Number: 084-HD033 Compliance Requirement Affected: Special Tests and Provisions Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: An effective internal control system over compliance with federal awards should be in place to ensure compliance with federal award requirements. Withdrawals from the residual receipts account may be made only for project purposes and with the approval of HUD (24 CFR section 891.400(e)). Condition: Audit procedures identified $12,319 in funds transferred out of the residual receipts account without the approval from HUD. Questioned Costs: None Cause: Internal controls of over compliance were not sufficiently designed to ensure adherence with compliance requirements with federal awards. Possible Effect: CCI Apartment Corporation is not in compliance with the special tests and provision requirements. Repeat Finding: No Recommendation: We recommend that management review and revise policies and procedures related to residual receipts withdrawal authorization and approval including enhancing the communication and training of individuals authorized to initiate withdrawals.