Finding Text
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.