Finding 480943 (2022-002)

Significant Deficiency
Requirement
J
Questioned Costs
-
Year
2022
Accepted
2024-08-12
Audit: 317049

AI Summary

  • Core Issue: The Project has not received any PRAC receipts for 2021 and 2022, impacting its financial stability.
  • Impacted Requirements: Monthly submissions are necessary to maintain operations and avoid reliance on advances.
  • Recommended Follow-Up: Collaborate with HUD officials to ensure timely processing of PRAC receipts and monitor contract renewal progress.

Finding Text

Finding #22-02 PRAC collections Condition: The Project has not received any PRAC receipts in 2022 or subsequent to year end for years 2021 and 2022. Criteria: The Project requires monthly submission in order to sustain a going concern. Effect: The Project has to obtain Project advances to sustain operations. Questioned Costs: $885,216 Cause: Management and HUD oversight in overseeing PRAC monthly submissions. Recommendation: Work with HUD officials to process PRAC receipts. Auditor’s Summary of the Auditees Comments on Findings and Recommendation Date: Management is working with HUD’s Debbie Gray, Darletta Baugh and TRACS consultants to process the vouchers in the HUD TRACS system. The renewed PRAC contract was received by HUD’s Lucille Ellison, HUD funding specialist on August 10, 2023. Completion Date: 8/23/2023 Response: Management is working with HUD’s Darletta Baugh - the Project manager for the processing of submissions now that the contract is renewed through September 2023.

Corrective Action Plan

Finding 2022-02: The Project has not received any PRAC receipts in 2022 and 2021 or subsequent to the year end. Recommendation: Management needs to work with HUD to process monthly PRAC submission receipts. Action Taken: Management is working with Darletta Baugh, HUD’s project manager regarding the non-receipt of the PRAC monthly submission. In addition, Management has delegated the oversight of the PRAC process.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Section 202 Capital Advance $3.62M
14.182 Project Rental Assistance Contract $452,767