Finding 1157039 (2024-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Project mistakenly paid $1,250 for expenses belonging to another project under common management.
  • Impacted Requirements: Payments should only be made for expenses directly related to the Project, as per Section 223(f).
  • Recommended Follow-Up: Review and verify invoices before payment to ensure compliance and prevent future errors.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the OTR - Arboretum West Apartments Facility FINDING 2024-004: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project paid the expense of another project under common management. Criteria: The Project should not pay the expenses of another project. Effect: The amount of the expense incorrectly paid was $1,250. Context: The Accounts and Notes Receivable account was tested at December 31, 2024. No sample was tested. Questioned Costs - $1,250, Cause: The Project mistakenly paid the invoice of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. Total-Department of Housing and Urban Development - $1,250; Non-compliance code - R.

Corrective Action Plan

For the OTR - Arboretum West Apartments Facility FINDING 2024-004: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 PAID THE EXPENSE OF ANOTHER PROJECT UNDER COMMON MANAGEMENT Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment.

Categories

Questioned Costs

Other Findings in this Audit

  • 1157038 2024-001
    Material Weakness Repeat
  • 1157040 2024-002
    Material Weakness Repeat
  • 1157041 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $15.45M
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $859,512
14.195 Project-Based Rental Assistance (pbra) $811,811