Finding Text
U.S. Department of Housing and Urban Development Finding 2022.002, CFDA #14.135 Section 221(d)(4) ? Insured Mortgage Condition: At June 30, 2022, there was $145,939 of related party receivables included in the surplus cash calculation comprised of $116,973 related to the Small Business Administration Paycheck Protection Program described below and $28,966 for other matters. As of December 31, 2022, the related party receivable totaling $116,973 related to the Small Business Administration Paycheck Protection Program. Criteria: The Project may only distribute funds to affiliates up to the amount required for management fees, as reimbursement for payroll, benefits, and operating expenses, or from allowable distributions of surplus cash taken only after the semiannual or annual surplus cash calculations. Amounts in excess are unauthorized distributions. Cause: The Project?s has a related party receivable at December 31, 2022, for amounts earned by the Project as part of the Small Business Administration Paycheck Protection Program. These funds, earned by the Project, were received by an affiliated entity in 2021 and have not yet been remitted to the Project. Effect: An affiliate of the Project has not remitted amounts earned by the Project as part of the Small Business Administration Paycheck Protection Program in a timely manner. Recommendation: The Project should request the affiliate to remit the amounts earned by the Project as part of the Small Business Administration Paycheck Protection Program. View of Responsible Officials: The Project will request payment from the affiliate and will continue to monitor related party activity to ensure the Project does not pay reimbursements or advances to affiliates in excess of allowed expenditures or allowable distributions of surplus cash.