Finding Text
S3800-010 Finding reference number 2023-001
S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157
S3800-015 Type of finding Federal Award Finding and Internal Control over Compliance
S3800-016 Finding resolution status Incomplete
S3800-017 Information on universe population size not applicable
S3800-018 Sample size information not applicable
S3800-019 Identification of repeat finding and
finding reference number
not applicable
S3800-020 Criteria The Regulatory Agreement between HUD and the owner
stipulates that project funds may be used only for expenses
that are reasonable and necessary to the operation of the
project.
S3800-030 Statement of condition The Organization repaid funds on a surplus cash note when
the project was not in a surplus cash position without HUD
approval.
S3800-032 Cause Management did not track that the obligation was payable only
from surplus cash.
S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary
obligations of the project.
S3800-035 Auditor non-compliance code H - Unauthorized distribution of project assets
S3800-037 FHA/Contract number 034-EE-104
S3800-040 Questioned costs $14,684
S3800-045 Reporting views of responsible officials Management agrees.
S3800-080 Recommendation Management should monitor internal controls over compliance
and receive HUD approval before approving future repayment
of surplus cash notes.
S3800-090 Auditors' summary of the auditee's
comments on the findings and
recommendations
Management concurs.
S3800-130 Response indicator Agree
S3800-140 Anticipated Completion Date March 31, 2024
S3800-150 Response Management is working to repay the funds to the project.