Finding Text
Finding 2022-003: Activities Allowed or Unallowed - Expenditures - Significant Deficiency Assistance Listing Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Criteria: Project Rental Assistance Contract (PRAC) funds may be used for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Expenses reported should be incurred within the federal award year. Questioned Costs: $69.64 Condition: One out of the twenty-five expenditures selected for testing was incurred in December 2021. This was not a statistically valid sample. Effect: Expenditure was recorded in incorrect project year. Cause: Error made by staff. The invoice was received late for fiscal year 2021, however site staff entered the invoice in 2022 when received. Recommendation: We recommend the Corporation implement procedures to ensure that proper cutoff is obtained related to expenses paid with PRAC funds.