FAC Explorer

Finding 498201 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-25
Audit: 320968
Organization: Rev. Dr. Clay Evans Manor (LA)
Auditor: Wharton CPA LLC

AI Summary

  • Core Issue: $229,388 in HUD 9250 funds was requested for operations but not repaid as required.
  • Impacted Requirements: Funds should be repaid within 60 days of receiving HAP subsidy funds.
  • Recommended Follow-Up: Ensure the Project complies with HUD 9250 repayment guidelines to avoid future issues.

Finding Text

Condition: HUD 9250 funds were requested for use in operations in the amount of $229,388. Criteria: According to HUD 9250 requests, advanced funds were to be repaid within 60 days of receipt of HAP subsidy funds. Cause: The cause is undeterminable. Effect: The Project utilized funds from the reserve for replacement account and currently does not have funds to repay the loan. Recommendation: I recommend the Project remain in compliance with the HUD 9250 requests.

Corrective Action Plan

Due to the fraudulent activity with the reserve for replacement bank account in October of 2023, we were unable to return the borrowed funds to the reserve account until the new account was open and accessible.

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 498198 2023-001
    Significant Deficiency
  • 498199 2023-002
    Significant Deficiency
  • 498200 2023-003
    Significant Deficiency
  • 498202 2023-005
    Significant Deficiency
  • 1074640 2023-001
    Significant Deficiency
  • 1074641 2023-002
    Significant Deficiency
  • 1074642 2023-003
    Significant Deficiency
  • 1074643 2023-004
    Significant Deficiency
  • 1074644 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $6.45M
14.195 Section 8 Housing Assistance Payments Program $691,627
14.191 Multifamily Housing Service Coordinators $66,693