Finding 181 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-10-05

AI Summary

  • Core Issue: GHURA is not meeting the requirement to pay subrecipients within 30 days of receiving their payment requests.
  • Impacted Requirements: This noncompliance affects the obligation, expenditure, and payment requirements outlined by HUD.
  • Recommended Follow-Up: Implement monitoring controls to ensure timely processing of payments, starting reviews immediately upon receiving requests.

Finding Text

Finding No.: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.231 Emergency Solutions Grant Program Federal Award No.: SW20-SW-66-0001 Area: Special Tests and Provisions – Obligation, Expenditure and Payment Requirements Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for obligation, expenditure, and payment requirements, the recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For all (or 100%) of the Program’s subrecipients, we noted payments that were either 3 or 7 days delayed after the allowable 30-day payment period. Cause: GHURA did not effectively implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Effect: GHURA is in noncompliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. No questioned cost is reported as the late payments are not considered improper payments. Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable special tests and provisions for obligation, expenditure, and payment requirements. Upon the receipt of a payment request from a subrecipient, responsible personnel should immediately commence the necessary reviews and processing of payments within time frames that are sufficient to enable the release of checks within 30 days. Views of Responsible Officials: GHURA agrees with the recommendation to review and process payment requests from subrecipients within the 30-day time frame.

Categories

Subrecipient Monitoring Special Tests & Provisions Allowable Costs / Cost Principles HUD Housing Programs

Other Findings in this Audit

  • 178 2022-001
    Material Weakness Repeat
  • 179 2022-001
    Material Weakness Repeat
  • 180 2022-002
    Significant Deficiency
  • 182 2022-003
    Significant Deficiency
  • 183 2022-003
    Significant Deficiency
  • 184 2022-004
    Material Weakness
  • 185 2022-005
    Material Weakness
  • 186 2022-004
    Material Weakness
  • 187 2022-005
    Material Weakness
  • 188 2022-004
    Material Weakness
  • 189 2022-005
    Material Weakness
  • 190 2022-004
    Material Weakness
  • 191 2022-005
    Material Weakness
  • 576620 2022-001
    Material Weakness Repeat
  • 576621 2022-001
    Material Weakness Repeat
  • 576622 2022-002
    Significant Deficiency
  • 576623 2022-002
    Significant Deficiency
  • 576624 2022-003
    Significant Deficiency
  • 576625 2022-003
    Significant Deficiency
  • 576626 2022-004
    Material Weakness
  • 576627 2022-005
    Material Weakness
  • 576628 2022-004
    Material Weakness
  • 576629 2022-005
    Material Weakness
  • 576630 2022-004
    Material Weakness
  • 576631 2022-005
    Material Weakness
  • 576632 2022-004
    Material Weakness
  • 576633 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $42.87M
14.248 Community Development Block Grants_section 108 Loan Guarantees $11.39M
14.850 Public and Indian Housing $5.67M
14.239 Home Investment Partnerships Program $4.42M
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $3.54M
14.872 Public Housing Capital Fund $2.18M
14.U03 Emergency Housing Voucher $1.48M
14.157 Supportive Housing for the Elderly $867,010
14.267 Continuum of Care Program $759,419
14.U02 Public Housing Cares Act Funding $353,818
14.U04 Hcv Cares Act Funding $317,271
14.879 Mainstream Vouchers $218,269
14.U01 Central Office Cost Cares Act Funding $200,001
14.896 Family Self-Sufficiency Program $169,551
14.191 Multifamily Housing Service Coordinators $62,380
14.870 Resident Opportunity and Supportive Services - Service Coordinators $23,676
14.231 Emergency Solutions Grant Program $9,618