Finding 400858 (2023-001)

Finding Reference Number: 2023-01 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and Project Assistance Rental #14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria: In accordance with HUD regulations, entities should not make unauthorized distributions of Project funds. Statement of Condition: The Project paid expenses for an adjacent project. Cause: The Corporation paid non-project expenses from Project funds. Effect or Potential Effect: The Project is noncompliant with HUD regulatory agreement. Auditor Non-Compliance Code: H - Unauthorized distribution of project assets Questioned Costs: $2,584 Reportable Views of Responsible Officials: Management is in agreement with the finding, amounts were paid for non-project expenses. Context: Not applicable Recommendation: Management should review procedures surrounding expense allocations and closely monitor amounts paid. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 12/31/2024 Response: Management is in agreement with the finding, amounts were paid for non-project expenses.