Finding 1093952 (2023-002)

Finding number : 2023-002 ALN: 14.157 - Supportive Housing for the Elderly Grantor: HUD Questioned Costs: $1,754.89 Criteria: Projects are required to abide by the guidelines of the Compliance Supplement Allowable Costs/Cost Principles which dictate costs which are not allowed in government funded Projects. Description of Condition: The Project was late in making its July city real estate tax payment of which the first half is due August 1 of each year incurring a penalty of $1,754.89. This penalty is not an allowed Project cost. Cause of Condition: The Project received a reduced July voucher because of normal adjustments and the August and September vouchers were not paid until October leaving the project unable to pay the taxes on time. Effect of Condition: The Project paid a penalty of $1,754.89 to the City of New Haven. Recommendations: Other sources should be sought out to pay these penalties or other expenses be deferred enabling the taxes to be paid on time. Managements Views and Corrective Action Plan: Other sources should be sought out to pay these penalties or other expenses be deferred enabling the taxes to be paid on time.