Finding Text
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811)
Assistance Listing Number: 14.181
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or Specific Requirement: Approved expenditures of federal awards without proper control completed.
Condition: During the 2024 audit, we noted that the Project approved expenditures of federal awards without proper review.
Questioned Costs: None.
Context: Invoice tested found to not be reviewed and approved per documented control procedure.
Cause: Due to change in management company during 2024.
Effect: The Project did properly review expenditures of federal awards.
Repeat Finding: None.
Recommendation: We recommend enforcing control procedures over expenditures of federal awards.
Views of Responsible Officials: There is no disagreement with the audit finding. During 2024, a new management company was hired as of July 1, 2024 and has implemented and enforced proper controls over expenditures of federal awards.