Finding Text
2025-02 – Supportive Housing for Disabled Persons ALN 14.181 Statement of Condition: During the audit, we noted that another property paid one month of HANDS Triad Housing, Inc.'s insurance audit escrow. This payment was not identified until after year end, resulting in an inter-property loan that was not approved by HUD. Criteria: Per HUD Handbook 4370.1, project funds must be used solely for purposes related to the operation of the specific multifamily property. Loans or advances from a project to another project, related business, or individual are considered unauthorized distributions of project assets unless approved by HUD. Effect of Condition: This is a violation of the HUD Regulations. Questioned Costs: $3,372 Cause of Condition: There was insufficient review or verification of payment details before processing. Recommendation: We recommend that management implement procedures to ensure payments are posted to the correct property accounts. This should include verification of account selection prior to payment processing. Response: See Corrective Action Plan.