Finding Text
Finding reference number: #2023-003
Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195
Identification numbers Property Year of award
CO99T851006 REDI IV 2017
Auditor non-compliance code: A - Activities Allowed or Unallowed
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of federal agency: U.S. Department of Housing and Urban Development
Finding reference number: #2023-003 (continued)
Pass-through entity: N/A
Questioned costs: $28,300
Repeat Finding: Yes
Statement of condition #2023-003 (Assistance Listing No. 14.195): For the year ended March 31, 2023, the Corporation paid $28,300 on behalf of a related entity without HUD approval.
Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD.
Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2023 has been reduced by $28,300.
Cause: The Corporation did not obtain HUD approval prior to making payments on behalf of the related entity.
Recommendation: The related entity should repay $28,300 to the Corporation. The Agent should consider obtaining written approval from HUD prior to making any future distributions or payments to related entities.
Completion date: December 13, 2023
Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $28,300 to the Corporation.