Finding Text
S3800-010: Finding Reference Number 2025-005 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly (Section 202) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B – Activities Allowed or Unallowed and Allowable Costs/Cost Principles S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size >250 S3800-018: Sample Size Information 25 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the regulatory agreement subsection 11(c), project funds may be used only for expenses that are reasonable and necessary to the operation of the project. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted that the Organization did not maintain proper documentation to support expenditures for four of the twenty-five samples. S3800-032: Cause The Organization did not follow its procedures to include supporting documentation with all expenditures of project funds. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to activities allowed or unallowed and allowable costs and cost principles and expenditures may not be allowed. S3800-035: Auditor Non-Compliance Code S – Internal control deficiencies S3800-040: Questioned Costs $2,462 S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to activities allowed or unallowed and allowable costs and cost principles. S3800-080: Recommendation The Organization should not expend project funds without supporting documentation. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 1, 2025 S3800-150: Response See Corrective Action Plan