Finding Text
Finding 2024-002: Unallowed Expenditures: Condition: Expenditures were made for costs which were not Project-related operating expenses. Criteria: Project funds may be used only for expenses that are reasonable and necessary to the operation of the Project as provided for in the Regulatory Agreement between HUD and the Project owner. Effect: Potential noncompliance with HUD agreement provisions. Cause: Legal expenses related to the sale of the Project by the Board were paid with Project funds. Recommendation: Consult with HUD to determine the corrective action. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. Questioned costs: $25,825