Finding 496320 (2024-003)

-
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2024-09-10
Audit: 319211
Organization: Elder Care Two, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Issue: The Corporation mistakenly paid a real estate tax bill for a related entity, leading to an underpayment of $3,680.
  • Trend: This error was due to management oversight in handling allowable expenses as per HUD guidelines.
  • Follow-up: Management has corrected the error and should ensure reimbursement to the related entity is completed.

Finding Text

Federal program - Capital advance; Criteria - The HUD Management handbook specifies the nature and content of allowable expenses; Condition - the Corporation erroneous paid the real estate tax bill for a related entity and that entity paid the Corporation tax, resulting in a underpayment by the Corporation totaling $3,680; Cause - management oversight; Recommendation - management should arrange to reimburse the related entity from the Corporation. Response: Management has corrected the error.

Corrective Action Plan

Management has corrected the error.

Categories

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $443,215