A. Current Findings on the Schedule of Findings, Questioned Costs, and
Recommendations.
1. Finding 2024-001 U.S. Department of Housing and Urban Development
Supportive Housing for Persons with Disabilities (Section 811) – CFDA
14.181; Grant period – Year ended June 30, 2024
a. Comments on the Finding and Each Recommendation.
Statement of Condition: The Project did not request tenant assistance payments for the month of April.
Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis.
Cause: The Project’s controls over monthly housing assistance payments were not working properly due to lack of management oversight due to turnover during the year.
Effect of Condition: The Project is not in compliance with the HUD approved Regulatory Agreement.
Recommendation: We recommend that the Project’s sponsor review the design and implementation of internal control procedures and identify areas to strengthen management oversight.
b. Action(s) Taken or Planned on the Finding
1. The Project’s sponsor is aware of the requirements of the HUD Regulatory Agreement and is working with new staff to ensure they receive the proper training on HUD requirements.
2. In August 2024, the April 2024 HAP requests were submitted for payment.