Finding 1106399 (2024-001)

2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 202 ALN Number: 14.157 Award Period: Year Ended June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or Specific Requirement: Expired Project Rental Assistance Contract (PRAC). Condition: The Corporation did not renew the PRAC timely. Questioned Costs: None. Context: The PRAC expired February 28, 2024, and was not renewed until March 28, 2024. Cause: The Corporation did not renew the contract timely. Effect: A PRAC is required for Housing Assistance Payments. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges this finding and is taking steps to correct. With the recent turnover of the HUD building management, new management team members were hired and have been trained on the process to ensure timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions are being reviewed by the Finance Department prior to submission to HUD.