Finding Text
Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Approved expenditures of federal awards that were not for the Project. Condition: During the 2025 audit, we noted that the Project approved expenditures of federal awards that were not for the Project. Questioned Costs: $3,587 in expenses approved. Context: Invoice tested found to not be for the Project. Cause: Due to change in management company during 2024 and being the first full year under new management. Effect: The Project did properly approve expenditures of federal awards. Repeat Finding: None. Recommendation: We recommend enforcing control procedures over expenditures of federal awards. We also recommend performing an additional year-end review of accounts payable to confirm that expenditures are appropriately classified and allocated to the correct sites. Views of Responsible Officials: There is no disagreement with the audit finding. The Management company will recommunicate their policies and ensure proper controls over expenditures of federal awards are enforced.