Finding 1095435 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-01-13
Audit: 337462
Organization: Ahepa 60, Inc. (PA)

AI Summary

  • Core Issue: The organization improperly repaid funds without HUD approval, violating the regulatory agreement.
  • Impacted Requirements: Funds must only be used for reasonable project expenses, and repayments require tracking of surplus cash availability.
  • Recommended Follow-Up: Management should enhance internal controls and ensure HUD approval for future repayments, with a target completion date of 12/31/2024.

Finding Text

S3800-010 Finding reference number 2024-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding S3800-016 Finding resolution status In Process S3800-017 Information on universe population not applicable S3800-018 Sample information not applicable S3800-019 Identification of repeat finding and finding reference number Repeat finding 2023-001 S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that project funds may be used only for expenses that are reasonable and necessary to the operation of the project. S3800-030 Statement of condition The Organization repaid funds on a surplus cash note in fiscal year 2023 when the project was not in a surplus cash position without HUD approval. S3800-032 Cause Management did not track that the obligation was payable only from surplus cash. S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary obligations of the project. S3800-035 Auditor non-compliance code H - Unauthorized distribution of project assets S3800-040 Questioned costs $14,684 S3800-037 Property associated with the finding 034EE104 S3800-038 Questioned costs $14,684 S3800-045 Reporting views of responsible officials Management agrees S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before approving future repayment of surplus cash notes. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management agrees S3800-130 Response indicator Agreed S3800-140 Anticipated Completion Date 12/31/2024 S3800-150 Response Management is working to repay the funds to the project

Categories

Questioned Costs HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Section 202 Hud Capital Advance $3.72M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $196,924