FAC Explorer

Finding 2391 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2023-11-27
Audit: 4086
Organization: Titusville Senior Housing Corporation (PA)
Auditor: Cliftonlarsonallen

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 necessary for Housing Assistance Payments, was not renewed until over a month after its expiration.
  • 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

2023-001 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 February 28, 2023, and was not renewed until April 5, 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.

Corrective Action Plan

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.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 578833 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $77,524