Finding Text
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 136-HD006, 1996)
Auditor non-compliance code: G - Unauthorized loans of project funds
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding
Sample size population: The sample size is not applicable to the finding
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,702
Statement of condition 2024-001: The Property paid expenses totaling $6,702 on behalf of another property without HUD approval.
Criteria: Pursuant to the terms of the Regulatory Agreement, the Property shall not make any payments for services, supplies, or materials unless such services are actually rendered for the Property or materials are delivered to the Property and are reasonably necessary for its operations.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. As a result, the Property's cash position at December 31, 2024 has been reduced by $6,702. This amount has been included on line 3 of the computation of surplus cash, distributions, and residual receipts.
Cause: The Property inadvertently paid expenses on behalf of another property.
Recommendation: Management should seek reimbursement for these transactions from the other property.
Management's response: Management concurs with the finding and agrees with the auditor's recommendation. On February 11, 2025, a reimbursement from the other property totaling $6,702 was deposited into the Property's operating account.