Finding 12466 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-02-08

AI Summary

  • Core Issue: The Corporation failed to renew the Project Rental Assistance Contract (PRAC) on time, leading to a significant deficiency in internal controls.
  • Impacted Requirements: The expired PRAC, which was crucial for Housing Assistance Payments, was not renewed until August 29, 2022, after it expired on March 31, 2022.
  • Recommended Follow-Up: Ensure timely annual renewal of the PRAC and implement a master schedule for budget submissions, with Finance Department reviews before submission.

Finding Text

2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Expired Project Rental Assistance Contract (PRAC). Condition: The Corporation did not renew the PRAC timely. Questioned costs: None. Context: The PRAC expired March 31, 2022, and was not renewed until August 29, 2022. Cause: Due to circumstances related to the COVID-19 Public Health Emergency, the Corporation did not renew the contract timely. Effect: A PRAC is required for Housing Assistance Payments. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions will now be reviewed by the Finance Department prior to submission.

Corrective Action Plan

2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Criteria or specific requirement: Expired Project Rental Assistance Contract (PRAC). Condition: The Corporation did not renew the PRAC timely. Context: The PRAC expired March 31, 2022, and was not renewed until August 29, 2022. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Action taken in response to finding: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions will now be reviewed by the Finance Department prior to submission. Name of contact person responsible for corrective action: Jeffrey Carraway

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 588908 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.80M