Finding Text
Condition - The Corporation provided operating funds, related to shared employees, totaling $17,826 to another organization without obtaining approval from HUD. Criteria - HUD requires all project funds to be used only for expenses necessary for the operation of the project as provided for in the HUD regulatory agreement. Effect - The Corporation is in violation of its regulatory agreement with HUD. Questioned Cost - $17,826 Cause - The Corporation provided operating funds, related to shared employees, to another organization. Recommendation - We recommended that the funds of $17,826 be immediately deposited into the Corporation?s operations and project funds are used only for necessary expenses for the operation of the project. Management?s Reply - Management will deposit $17,826 into the project?s operating account as soon as possible and only use project funds for the necessary expenses of operating the project.