Finding Text
Finding Reference Number: 2025-003 Assist Listing Title: Supportive Housing for the Elderly Program Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number (FAIN): Federal Award Year: 2025 Pass-Through Entity: N/A Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of Project funds. Condition: The Project paid expenses for an adjacent project. Cause: The Corporation paid non-project expenses from Project funds due to inadequate review of vendor invoices and insufficient controls over payment authorization. Effect or Potential Effect: The Project is noncompliance with HUD regulatory agreement. Questioned Costs: $6,293 Perspective Information: This issue was also noted in the prior audit as Finding 2024-001, and remains unresolved, indicating a potential systemic condition or that prior corrective actions were not fully effective. Continued monitoring and additional corrective measures are necessary to prevent recurrence. Repeat Finding: Yes Recommendation: Management should review and strengthen procedures surrounding vendor payments to ensure that only allowable project expenses are paid from the funds. Implement additional review controls prior to disbursement. Views of Responsible Officials: Management agrees with the finding and acknowledges that amounts were paid for non-project expenses. Auditor's Summary of Auditee's Comments: Agree with management's assessment. Response Indicator: Agree Completion Date: 9/30/2026 Response: Management is in agreement with the finding, amounts were paid for non-project expenses.