Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Department of Housing and Urban Development Finding 2022-001: Major Program: Section 8 Housing Assistance Payments Program, Federal Assistance Listing Number 14.195 STATEMENT OF CONDITION The Project paid for an expense of $3,547 on behalf of another property. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to use funds in accordance with the Regulatory Agreement. EFFECT OF CONDITION The Project used funds to pay for an expense related to another project, which is the same location as the Project. CONTEXT During the audit period, the client discovered an expense was paid for during the year for another project. CAUSE OF CONDITION Management mistakenly did not ensure the correct project was paying for the expense. RECOMMENDATION The auditor recommends ensuring all disbursements are thoroughly reviewed prior to authorizing the expense to be paid. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be reimbursed by the other project for the expense paid on its behalf.