Finding 478408 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-07-15
Audit: 315100
Organization: Johnnie B. Moore Towers, Inc. (GA)
Auditor: Aprio LLP

AI Summary

  • Core Issue: Project funds were improperly used to pay expenses for an adjacent property.
  • Impacted Requirements: This violates HUD regulations regarding unauthorized distributions of project funds.
  • Recommended Follow-Up: Implement strict monitoring of expense allocations to prevent misuse of Project funds.

Finding Text

Finding Reference Number: 2023-02 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Information on Universe Population Size: n/a Sample Size Information: n/a 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 property. Cause: The Corporation paid non-project expenses from Project funds. Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement. Auditor Non-Compliance Code: H - Unauthorized Distribution of Project Funds Questioned Costs: $899 Reportable Views of Responsible Officials: We agree that the Corporation paid amounts from Project funds for non-project expenses. Context: Not applicable Recommendation: Expense allocations should be closely monitored to ensure Project funds are not used for nonproject expenses. 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

Corrective Action Plan

In accordance with HUD regulations, entities should not make unauthorized distributions of project funds. The project paid expenses for an adjacent property. The Corporation paid non-project expenses from Project funds. The Project is noncompliant with the HUD regulatory agreement. Expense allocations should be closely monitored to ensure Project funds are not used for non-project expenses.

Categories

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Other Findings in this Audit

  • 478409 2023-003
    Significant Deficiency
  • 1054850 2023-002
    Significant Deficiency
  • 1054851 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $459,416