Finding 571912 (2024-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-07-24

AI Summary

  • Core Issue: The Organization failed to submit the required annual budget for the project rental assistance contract to HUD on time.
  • Impacted Requirements: Timely submission of the annual budget is mandatory for compliance with HUD regulations.
  • Recommended Follow-Up: Implement a process to ensure future budgets are submitted to HUD by the deadline.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Section 202 Capital Advance and Project Rental Assistance Contract ALN: 14.157 Award Period: 2024 Type of Finding: Significant Deficiency Condition: The Organization did not submit a budget related to their project rental assistance contract. Criteria: An annual budget must be submitted to HUD for project rental assistance contracts. Questioned costs: None Context: During reporting testing, it was determined that budgets had not been submitted to HUD on a timely basis, as required. Effect: The annual budget was not submitted to HUD on a timely basis, as required. Cause: The Organization was not able to submit an annual budget to HUD prior to the submission deadline. Recommendation: We recommend the annual budget is submitted to HUD on a timely basis, as required. Views of Responsible Officials: A process will be put into place to ensure annual budgets will be submitted timely. Repeat Finding: No

Corrective Action Plan

PRAC Budgets Recommendation: We recommend audits are completed timely to ensure the annual budget is submitted to HUD as required. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The process for submitting the budget for 2025 has already begun. Management is monitoring the process to ensure timely submission. Name(s) of the contact person(s) responsible for corrective action: Alex Lueth, VP of Finance Planned completion date for corrective action plan: June 2025

Categories

HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 571911 2024-001
    Significant Deficiency
  • 1148353 2024-001
    Significant Deficiency
  • 1148354 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $382,390
14.239 Home Investment Partnerships Program $175,000
14.157 Supportive Housing for the Elderly $172,477