Finding 1099204 (2024-002)

Finding Reference Number: 2024-02 Title and AL Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of Project funds. Statement of Condition: The Project paid expenses for an adjacent project. Cause: The Corporation paid non-project expenses from Project funds. Effect or Potential Effect: The Project is noncompliance with HUD regulatory agreement. Auditor Non-Compliance Code: H - Unauthorized distribution of project assets Questioned Costs: $5,400 Reportable Views of Responsible Officials: Management is in agreement with the finding, amounts were paid for non-project expenses. Context: n/a Recommendation: Management should review procedures surrounding payments to vendors and ensure they are paying for Project expenses. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2025 Response: Management is in agreement with the finding, amounts were paid for non-project expenses.