Finding 578833 (2023-001)

2023-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 ALN Number: 14.157 Award Period: Year Ended June 30, 2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or specific requirement: Expired Project Rental Assistance Contract (PRAC). Condition: The Corporation did not renew the PRAC timely. Questioned costs: None. Context: The PRAC expired February 28, 2023, and was not renewed until April 5, 2023. Cause: The Corporation did not renew the contract timely. Effect: A PRAC is required for Housing Assistance Payments. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions will now be reviewed by the Finance Department prior to submission.