Finding 29141 (2022-003)

Finding No. 2022-003: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, application for renewal of the PRAC contracts must be completed within 120 days of the contract expiration date. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration date. Cause: The Project did not follow HUD regulations for contract renewal resulting in the delay of HUD funding and short-term l oans taken from the replacement reserve. Effect or Potential Effect: The Project had to take short term loans from the replacement serve account as a result of an untimely PRAC renewal. Auditor Non-Compliance Cod e : R ? Section 8 Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for the timely renewal of the PRAC contract. Response Indicator: Agree. Completion Date: 1/7/2022 Response: Management has established a compliance department in addition to utilizing a compliance monitoring software. Both will assist in monitoring contract renewals thus ensuring timely submissions per HUD guidelines.