Finding Text
Finding reference number: 2022-001 Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 061-EE66 and 2012) Auditor non-compliance code: G - Unauthorized Loans from Project Funds Finding resolution status: Resolved Universe population size: The universe 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: $4,565 Statement of Condition 2022-001 (Assistance Listing 14.157): During the year ended September 30, 2022, the Corporation paid expenses totaling $4,565 on behalf of an affiliated entity without HUD approval. Criteria: Section 11(h) of the Regulatory Agreement states that operating funds of the Corporation shall only be withdrawn in accordance with the Regulatory Agreement for expenses of the Property. Effect: The Corporation is not in compliance with the Regulatory Agreement. The Property's operating cash account has been reduced by $4,565. This amount has been considered in the surplus cash calculation for the year ended September 30, 2022. Cause: The Corporation erroneously paid expenses on behalf of an affiliated entity from the Property's operating cash account. Recommendation: The affiliated entity should repay $4,565 to the Corporation. Completion date: October 25, 2022 Management Response: Agree. The affiliated entity repaid the Corporation $4,565 on October 25, 2022.