FAC Explorer

Finding 1215149 (2025-010)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-05-20
Audit: 401818
Organization: Friends Alliance Housing Ii,inc D/b/a Friendship House (LA)
Auditor: TIMOTHY PRIEST

AI Summary

  • Answer: The Project sold a vehicle without HUD's prior approval.
  • Trend: This indicates a pattern of not following federal regulations regarding equipment disposal.
  • List: To address this, establish procedures to ensure HUD approval is obtained before disposing of federally funded assets.

Finding Text

Condition: The Project disposed of a vehicle during the year without obtaining prior approval from HUD. Criteria: Federal regulations require prior approval for disposition of equipment acquired with Federal funds. Cause: Lack of awareness of HUD approval requirements. Effect: Noncompliance with Federal equipment management requirements. Questioned Costs: $8,700. Recommendation: Implement procedures to ensure HUD approval is obtained prior to disposing of any Federally funded assets.

Corrective Action Plan

Management will request retroactive HUD disposition approval and either demonstrate proper handling of proceeds or reimburse/deposit funds as directed by HUD. A written fixed-asset policy will be implemented requiring HUD approval prior to asset disposal, Board approval of dispositions, and retention of HUD correspondence and disposition documentation.

Categories

HUD Housing Programs Equipment & Real Property Management

Other Findings in this Audit

  • 1215148 2025-009
    Material Weakness Repeat
  • 1215150 2025-011
    Material Weakness Repeat
  • 1215151 2025-012
    Material Weakness Repeat
  • 1215152 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.28M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $90,551