FAC Explorer

Finding 571893 (2024-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-07-24
Audit: 362935
Organization: Leeway-Welton Housing Corporation (CT)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Project approved federal award expenditures without proper review, indicating a significant internal control deficiency.
  • Impacted Requirements: Compliance with documented control procedures for reviewing and approving expenditures was not met.
  • Recommended Follow-Up: Enforce control procedures over expenditures to ensure proper review and approval moving forward.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Approved expenditures of federal awards without proper control completed. Condition: During the 2024 audit, we noted that the Project approved expenditures of federal awards without proper review. Questioned Costs: None. Context: Invoice tested found to not be reviewed and approved per documented control procedure. Cause: Due to change in management company during 2024. Effect: The Project did properly review expenditures of federal awards. Repeat Finding: None. Recommendation: We recommend enforcing control procedures over expenditures of federal awards. Views of Responsible Officials: There is no disagreement with the audit finding. During 2024, a new management company was hired as of July 1, 2024 and has implemented and enforced proper controls over expenditures of federal awards.

Corrective Action Plan

Approved expenditures of federal awards without proper control completed. Recommendation: CLA Recommends enforcing control procedures over expenditures of federal awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: During 2024, a new management company was hired as of July 1, 2024 and has implemented and enforced proper controls over expenditures of federal awards. Name of the contact person responsible for corrective action: Sabine Cox, EHM Comptroller Planned completion date for corrective action plan: May 30, 2025

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571892 2024-001
    Significant Deficiency Repeat
  • 571894 2024-003
    Significant Deficiency
  • 571895 2024-004
    Significant Deficiency Repeat
  • 571896 2024-001
    Significant Deficiency Repeat
  • 571897 2024-002
    Significant Deficiency
  • 571898 2024-003
    Significant Deficiency
  • 571899 2024-004
    Significant Deficiency Repeat
  • 1148334 2024-001
    Significant Deficiency Repeat
  • 1148335 2024-002
    Significant Deficiency
  • 1148336 2024-003
    Significant Deficiency
  • 1148337 2024-004
    Significant Deficiency Repeat
  • 1148338 2024-001
    Significant Deficiency Repeat
  • 1148339 2024-002
    Significant Deficiency
  • 1148340 2024-003
    Significant Deficiency
  • 1148341 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $226,775