Finding Text
Information on the Federal Program: Assistance Living Number 14.157 - U.S. Department of Housing and Urban Development-Elderly Supportive Housing/Section 202 Direct Loan. Grant Identifying Number – 103-EH059-NP-WAH/L8. Compliance Requirement: Allowable Activities/Costs. Material Noncompliance. Criteria: Program requirements state that only properly supported allowable costs be charged to the program. Condition: The system of internal controls did not prevent the improper payments of questioned costs of expenses for a property that was not the Indian Center Housing Corporation d/b/a The Indian Center property. Cause: Improper payments were made for properties that were not Indian Center Housing Corporation d/b/a The Indian Center. Effect or protentional effect: The control deficiency may allow for the payment of improper expenses and questioned costs per HUD guidelines. Questioned Costs: $25,344. Context: Of the $18,699 of costs sampled $1,005 represented questioned costs. Additionally, based on the questioned costs identified, a projection was performed for the total population in the program during the year. Of the total population of $471,564, likely questioned costs based on the projection was $25,344. Recommendation: The Indian Center Housing Corporation d/b/a The Indian Center should improve its internal control procedures to ensure proper payment of expenses and questioned costs. Views of responsible officials: The improper payments were returned in the subsequent year. Indian Center Housing Corporation d/b/a The Indian Center will review its procedures to ensure that only proper expenses are paid.