Finding 1221764 (2025-001)

FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Payroll expenses. Sample Size Information: Quarterly Form 941s. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, all disbursements from the regular operating account must only be used to pay for activities of the Project. Project funds cannot be loaned or used for non-project purposes. Statement of Condition: The Project erroneously paid $9,047 in wages for a shared community manager for time spent working at another project. Cause: The Project did not update the community manager’s status as a shared employee in a timely manner. Effect or Potential Effect: Unauthorized use of project assets. Auditor Non-Compliance Code: H – Unauthorized distribution of project assets Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should enhance their procedures to ensure that all payroll disbursements are for work performed at the Project. Response Indicator: Agree. Completion Date: 9/30/2026 Response: Payroll procedures have been enhanced to ensure all employee changes are done timely. Questioned Costs – Department of Housing and Urban Development $ 9,047 Total Questioned Costs – Department of Housing and Urban Development $ 9,047