Finding Text
Federal agency: U.S. Department of Housing and Urban Development
Federal program title: Supportive Housing for the Elderly Section 202
ALN Number: 14.157
Award Period: Year Ended June 30, 2023
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 September 30, 2022, and was not renewed until February 14, 2023.
Cause: 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.