Finding Text
Condition - During the year ended December 31, 2022, the Corporation provided operating funds, related to shared employees, totaling $17,826 to another organization without obtaining approval from HUD. The Corporation collected $659 of the $17,826 during the year ended December 31, 2023, leaving a receivable balance of $17,167 at December 31, 2023.
Criteria - HUD requires all project funds to be used only for expenses necessary for the operation of the project as provided for in the HUD regulatory agreement.
Effect - The Corporation was in violation of its regulatory agreement with HUD.
Questioned Cost - $17,167
Cause - The Corporation provided operating funds, related to shared employees, to another organization.
Repeat Finding - This is a repeat finding of item 2022-002 as reported in the year ended December 31, 2022.
Recommendation - We recommend that the funds of $17,167 be immediately deposited into the Corporation's operations and project funds are used only for necessary expenses for the operation of the project.
Management’s Reply - Management will deposit $17,167 into the project's operating account as soon as possible and only use project funds for the necessary expenses of operating the project.