Finding 12438 (2022-001)

-
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-10-16
Audit: 16866
Organization: Metairie Manor (LA)

AI Summary

  • Core Issue: Disbursements from restricted funds were made without prior written consent from HUD.
  • Impacted Requirements: Regulatory agreement mandates HUD approval before accessing restricted funds.
  • Recommended Follow-Up: Ensure Form 9250 is submitted to HUD for approval to rectify the situation.

Finding Text

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: According to the regulatory agreement, disbursements from restricted funds may only be made after receiving written consent from HUD. Statement of Condition: HUD approval was not granted for disbursements from the Debt Service Savings account. Cause: HUD approval was not requested until after the audit period. Effect or Potential Effect: The restricted account is underfunded by the amount of the withdrawal. Auditor Non-Compliance Code: Z Questioned Costs: None Reporting Views of Responsible Officials: Management agrees with the finding. Management has submitted the forms for HUD?s approval. Context: HUD approval was not granted for disbursements from the restricted accounts. Recommendation: Management should submit Form 9250 to the HUD project manager for approval. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. Management has submitted the forms for HUD?s approval. Response Indicator: Agree Completion Date: June 22, 2022 Response: Management agrees with the finding. Management has submitted the forms for HUD?s approval.

Corrective Action Plan

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. Management has submitted the forms for HUD?s approval. Completion Date: June 22, 2022

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $10.81M
14.195 Section 8 Housing Assistance Payments Program $1.88M