Finding 1095437 (2024-001)

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 Unresolved S3800-017 Information on universe population Not applicable S3800-018 Sample information Not applicable S3800-019 Identification of repeat finding and finding reference number Not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that HUD approval is required for cash advances to a related party. S3800-030 Statement of condition The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD approval. S3800-032 Cause Cash needs of the related party non-profit HUD project. S3800-033 Effect or potential effect S3800-040 Questioned costs $4,420 S3800-037 Property associated with the finding 073-EE075 S3800-038 Questioned costs $4,420 S3800-045 Reporting views of responsible officials Management agrees S3800-080 Recommendation Management should monitor internal controls and receive HUD approval. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date 12/31/2024 S3800-150 Response The Organization made an advance to a related party, AHEPA 78 Phase III, Inc., without HUD approval. Cash may be unavailable to meet reasonable and necessary obligations of the project Management should monitor internal controls and receive HUD approval. The management agent will repay the funds on behalf of the related party housing project until that property has funds available, pending HUD approval.