Finding Text
Finding 2022-001 Questioned Costs: $37,720 Information of Universe and Population Size: N/A Sample Size Information: N/A Noncompliance Information: The Project purchased carpeting with project funds for use by Shenango Treetops Inc, Cedarcrest Housing Corporation, and Wampum Park Housing Corporation. This resulted in an unauthorized loan of project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation. Condition: The Project purchased carpeting with project funds for us by Cedarcrest Housing Corporation and Wampum Park Housing Corporation in the amount of $37,720. These funds are an outstanding receivable as of June 30, 2022. Criteria: HUD regulations do not permit loans or advances of project funds without the prior written approval of HUD. Cause: The Project purchased carpeting with project funds for use by Cedarcrest Housing Corporation and Wampum Park Housing Corporation. This has resulted in an unauthorized loan of Project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation. Effect: The Project has made an unauthorized loan of project funds to Cedarcrest Housing Corporation and Wampum Park Housing Corporation in the amount of $37,720 as of June 30, 2022. Recommendation: Those charged with Governance and Management should reimburse the Project the amount of $37,720 as soon as feasible. Reporting Views of Responsible Official: After the year ending June 30, 2022, project management realized they had inadvertently loaned project funds and reported it to the auditors and HUD project management. Those charged with Governance and Management agree with the finding and will reimburse the loan on a timely basis.