Finding 1157041 (2024-003)

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

AI Summary

  • Core Issue: The Project mistakenly paid $3,500 for expenses belonging to another project.
  • Impacted Requirements: Projects should only cover their own expenses, not those of others.
  • Recommended Follow-Up: Review and verify invoices before payment to ensure compliance.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Waukegan Supportive Housing Facility FINDING 2024-003: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 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 $3,500. Context: The Accounts Receivable - Operations account was tested at December 31, 2024. No sample was tested. Questioned Costs - $3,500, 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 $3,500, Non-compliance code - R

Corrective Action Plan

For the Waukegan Supportive Housing Facility - FINDING 2024-003: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 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 HUD Housing Programs

Other Findings in this Audit

  • 1157038 2024-001
    Material Weakness Repeat
  • 1157039 2024-004
    Material Weakness Repeat
  • 1157040 2024-002
    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