Finding 37800 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2022-10-23
Audit: 24102
Auditor: D'ambra CPA

AI Summary

  • Issue: The property incorrectly paid $3,944 in invoices for another property.
  • Requirement: HUD regulations allow only eligible costs related to the property to be paid.
  • Follow-up: Management has reimbursed the property for the erroneous payments.

Finding Text

Finding 2022-001: Federal program - Section 223(f) Insured Mortgage: Criteria - HUD regulations specify that only eligible costs relating to the property are allowed to be paid by the property; Condition - the property paid another property?s invoices totaling $3,944; Cause - management oversight; Recommendation - management should reimburse the property for the invoices paid in error. Response: Management has reimbursed the property for the invoices paid in error.

Corrective Action Plan

August 26, 2022 D?Ambra CPA 531 Harris Avenue Woonsocket, RI 02895 RE: Corrective Action Plan: Boucher Apartments Finding 2022-001: Federal program - Section 223(?) 811: Criteria - HUD regulations specify that only eligible costs relating to the property are allowed to be paid by the property; Condition - the property paid another property's invoices totaling $3,944; Cause - management oversight; Recommendation - management should reimburse the property for the invoices paid in error. Response: Management has reimbursed the property for the invoices paid in error. Corrective Action Plan: Management has reimbursed the property for the invoices paid in error and have adopted the attached internal control workflow to ensure that invoices are properly allocated prior to payment following our transition to a new financial and property management software system. We have also expanded our finance department by 2 FTE?s in the past two years to ensure that we have proper staffing to deal with an expanded number of transactions. Responsible party: Frank Shea

Categories

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.53M
14.195 Section 8 Housing Assistance Payments Program $500,881
14.157 Supportive Housing for the Elderly $349,914
14.191 Multifamily Housing Service Coordinators $32,425