Finding 1153881 (2025-003)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2025-09-22

AI Summary

  • Core Issue: HUD regulations prohibit advancing loans between HUD programs, but funds were transferred from the Low Rent program to HCV and Sec 8 N/C programs.
  • Impacted Requirements: The Authority must adhere to HUD's guidelines to avoid inter-program financial transactions that violate regulations.
  • Recommended Follow-Up: Establish a repayment plan for HCV and Sec 8 N/C programs to reimburse the Low Rent program, ensuring timely liquidation of all receivables and payables.

Finding Text

2025-003 HUD Project loan made to other HUD Programs Criteria: HUD has certain regulations and procedures which should be followed by the Authority. Specifically, HUD project should not advance loans to other HUD programs. Condition: At year end, the Authority had the following inter-program receivable/payable between HUD and USDA programs: Due From/Due To Low Rent HCV Sec 8 N/C (Corazon Square) Due from HCV $ 36,079 $ --- $ --- Due from Sec 8 N/C 121,521 Due to Low Rent --- (36,079) (121,521) Questioned Costs: None noted. Effect: HUD funds were advanced to other HUD programs. Cause: It appears that the Low Rent program assisted the HCV and Sec 8 N/C program in paying for payroll and certain contract costs. Recommendation: I recommend that the Authority implement a plan whereby the HCV and Sec 8 N/C programs can re-pay Low Rent program for all expenses all receivable/payable are liquidated in a timely manner. Management’s Response: The submissions from our CPA Accounting Firm (Urlaub) were delayed in submitting reports on how much funding was to be transferred from Corazon Square to Low Rent. Staff changes occurred two times in our fiscal year ending 2025 with our CPA, and currently we are on our third point of contact with Urlaub. The Trinidad Housing Authority is currently exploring options for receiving this information in a timely manner, so transfers are completed on time and correctly.

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1153882 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.48M
14.157 Supportive Housing for the Elderly $1.29M
14.850 Public and Indian Housing $703,375
14.871 Section 8 Housing Choice Vouchers $375,743
14.182 Section 8 New Construction and Substantial Rehabilitation $251,690