Finding Text
2024-003 - Cash Disbursements Federal Program - U.S. Department of Housing and Urban Development Assistance Listing Number 14.157 - Supportive Housing for the Elderly (Section 202) Material Weakness & Noncompliance Category of Finding - Cash Management Criteria - The HUD audit guide requires that all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation and be in the name of the Project. Condition - The Corporation made several payments without having proper documentation and also made one payment not in the name of the Project. Context - Of the total population of 12 months of disbursements, 40 were tested. One invoice was not in the name of the Project and 3 disbursements did not have proper documentation for the payment. Based on our sample, inquiry of employees, we understand the finding to be prevalent at the Corporation throughout the year. Cause - The previous management agent chose to pay the invoices without proper documentation. Effect - We are unable to determine if the expenditures are in compliance with the Regulatory Agreement and also the Corporation had $128 less of operating cash due to paying an invoice not the Project’s name. Identification of repeat finding - No Recommendation - The Corporation should only make disbursements when there is proper documentation supporting the disbursement. View of responsible officials and planned corrective actions - The Corporation agrees with the finding and believes the new management agent has the procedures and controls in place to detect and prevent a similar finding to occur in the future. 2023-001 - Income Certifications Federal Program - U.S. Department of Housing and Urban Development Assistance Listing Number 14.157 - Supportive Housing for the Elderly (Section 202) Material Weakness & Noncompliance Category of Finding - Eligibility Condition - Annual recertifications of family income and composition were not completed and/or were not completed timely. Recommendation - Site managers should receive additional training and be reminded of the procedures in place to ensure that annual recertifications are completed timely. In addition, procedures should be put in place to ensure recertifications continue to be completed when site staff turns over at properties. Management should continue to monitor site staffing and ensure procedures are in-place as back up for site staffing shortages. Status - Not corrected. Repeat finding in 2024