Finding Text
Finding reference number: 2024-003
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 101-HD029, 2004)
Auditor non-compliance code: A – Activities Allowed or Unallowed
Finding resolution status: Cleared
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: Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $10,000
Statement of condition 2024-002: For the year ended March 31, 2024, the Corporation repaid $10,000 to a related entity without HUD approval.
Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and Uniform Guidance and the Corporation's cash position at March 31, 2024 has been reduced by $10,000.
Cause: The Corporation did not obtain HUD approval prior to making payments to the related entity.
Recommendation: The related entity should repay $10,000 to the Corporation. The Agent should obtain written approval from HUD prior to making any future distributions or payments to related entities.
Management's response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity repaid $10,000 to the Corporation on January 2, 2025.