Finding 1080416 (2024-002)

-
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2024-10-28

AI Summary

  • Issue: Delay in assistance payments led to a related party loan of $25,000 to maintain services.
  • Trend: Management agent struggled to secure HUD approval for additional funds, indicating potential issues with funding processes.
  • Follow-up: Review funding approval procedures and assess the impact of related party transactions on project finances.

Finding Text

Due to a delay in assistance payments, the management agent (a related party to the project sponsor) was forced to laon the project funds to avoid an interruption in services. The management agenet was not successful in getting HUD's approval for the additional replacement reserve funds to cover the deficit. When the assistance payments were finally received, the project repaid the related party loan in the amount of $25,000.

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 $4.87M
14.239 Home Investment Partnerships Program $400,000