Finding 4921 (2023-001)

FINDING No. 2023-001: 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: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date of October 30, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the 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: 12/09/2022 Response: Management has implemented new procedures in addition to having compliance send email reminders to ensure the timely processing of PRAC renewals.