Finding Text
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Unauthorized distribution of project assets
Finding resolution status: Outstanding
Universe population size: The universal population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $14,210
Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation made
additional principal payments on the note payable of $33,799, which was in excess of surplus cash
calculated at June 30, 2023 by $14,210.
Criteria: In accordance with HUD approval for the note payable, dated April 15, 2016, the Corporation
may only make monthly payments of $3,627.34 and additional payments based on surplus cash
calculated annually. Any unauthorized payments shall be returned to the Corporation.
Effect: The Corporation is not in compliance with the HUD requirements. At June 30, 2024, the
Property's operating account is underfunded by $14,210. This amount has been considered in the
computation of surplus cash, distributions and residual receipts at June 30, 2024.
Cause: Management inadvertently made payments on the note based on surplus cash calculated in
prior years.
Recommendation: AHEPA 371, Inc. should reimburse the Property's operating account in the amount
of $14,210.
Management's response: Agree. AHEPA 371, Inc. will reimburse the Property's operating account.