Finding 581363 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-18

AI Summary

  • Core Issue: The Project failed to renew the PRAC contract 120 days before its expiration, leading to delayed HUD funding.
  • Impacted Requirements: Non-compliance with HUD regulations regarding timely contract renewals.
  • Recommended Follow-Up: Ensure adherence to new procedures and email reminders for future PRAC renewals to prevent funding interruptions.

Finding Text

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed 120 days prior to the PRAC expiration date. Statement of Condition: The Project did not complete the renewal process 120 days prior to the PRAC expiration date of October 30, 2022. Cause: The Project did not follow HUD regulations for a timely contract renewal resulting in the delay of HUD funding. Effect or Potential Effect: The Project is not in compliance with HUD regulations for timely renewal of PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R – Section 8 Program Administration Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 12/09/2022 Response: Management has implemented new procedures in addition to having compliance send email reminders to ensure the timely processing of PRAC renewals.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $2.70M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract - (prac) $292,296