Finding Text
S3800-010: Finding Reference Number 2025-007 (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 N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the regulatory agreement subsection 11(k), no director shall have any financial interest in any contractual arrangement entered into the Organization in connection with the rendition of services thereto. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted $1,553 was paid to a company affiliated with a member of the board of directors. S3800-032: Cause The Organization was not aware of the requirement contained in the regulatory agreement. S3800-033: Effect or Potential Effect The Organization expended project funds that were not permitted by the regulatory agreement. S3800-035: Auditor Non-Compliance Code: Z – Other S3800-040: Questioned Costs $1,553 S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization was not aware of the requirement contained in the regulatory agreement. S3800-080: Recommendation The Organization should obtain HUD’s permission to enter into a financial arrangement with an entity affiliated with a board member or obtain reimbursement of the expenditure. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agrees with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2025 S3800-150: Response See Corrective Action Plan