Finding 1096199 (2024-001)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-01-20

AI Summary

  • Core Issue: One cash disbursement of $100 was incorrectly paid for another project, violating compliance rules.
  • Impacted Requirements: The Project must only pay its own expenses, not those of other projects under common management.
  • Recommended Follow-Up: Review and verify invoices before payment to ensure compliance; accounts payable staff will receive reminders to prevent future errors.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 223 (f), ASSISTANCE LISTING NUMBER 14.155 Condition: In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of the expense incorrectly paid was $100 out of a total sample of disbursements of $14,983. Context: A sample of disbursements was selected for testing of compliance. The test found one disbursement that was not in compliance. The non compliances had a financial effect outlined below. The details and results of the sample are as follows: Population - 218, $385,800; Sample - 25, $14,983; Not in Compliance - 1, $100; Questioned Costs $100; Cause: The Project mistakenly paid the invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. Total-Department of Housing and Urban Development - $100; Non-compliance code - R

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.52M
14.195 Project-Based Rental Assistance (pbra) $306,554