Finding 485698 (2023-002)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-04

AI Summary

  • Core Issue: The Project failed to renew the PRAC contract 120 days before its expiration, violating HUD regulations.
  • Impacted Requirements: Non-compliance with HUD rules led to delays in receiving HAP funds, affecting financial stability.
  • Recommended Follow-Up: Implement a regular review schedule for contract renewals to ensure timely compliance moving forward.

Finding Text

FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157. Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-002. Criteria: As required by HUD regulations, applications for renewal of the PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewa process 120 days prior to the PRAC expiration date. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in a delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 06/07/2023. Response: A schedule of contract renewals is in process and will be reviewed on a regular basis.

Corrective Action Plan

FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should comply with HUD regulations for timely renewal of PRAC contract to ensure no interruption in funding. Action Taken: A schedule of contract renewals is in process and will be reviewed on a regular basis.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $1.13M
14.157 Supportive Housing for the Elderly - Prac $139,072