FAC Explorer

Finding 1240337 (2025-001)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2025
Accepted
2026-10-13
Audit: 414861
Organization: Judson Terrace, Inc. (OH)
Auditor: EISNERAMPER

AI Summary

  • Core Issue: The Corporation improperly paid payroll expenses from one project using funds meant for another project.
  • Impacted Requirements: This violates the regulatory agreement that allows distributions only from surplus cash.
  • Recommended Follow-Up: Return the misallocated funds to the affected project to ensure compliance.

Finding Text

S3800-010 Finding Reference Number 2025-1 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria Compliance with the Regulatory Agreement stipulates that distributions and advances are to be made only to the extent of surplus cash. S3800-030 Statement of Condition The Corporation paid payroll expenses belonging to other projects. S3800-035 Auditor Non-Compliance Code H - Unauthorized distribution of project assets S3800-037 FHA/Contract Number 046-11155 S3800-038 Questioned Costs 33907 S3800-050 Context Through an error in management's payroll allocation, the Project was billed and paid payroll expenses belonging to other projects. S3800-060 Effect Less funds are available to meet project needs. S3800-070 Cause Management oversight. S3800-080 Recommendation Funds should be returned to the Project.

Corrective Action Plan

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations The Organization concurs that the Project paid payroll expenses belonging to other projects. S3800-130 Response Indicator Agree S3800-140 Completion Date December 31, 2026 S3800-150 Response Management will return $33,907 to the Project. S3800-160 Contact Person First Name Mary S3800-180 Contact Person Last Name Loesche

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.134 MORTGAGE INSURANCE RENTAL HOUSING $2.05M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $247,128