Finding 598604 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-06-22
Audit: 23412
Organization: Palermo Lakes, Inc. (FL)

AI Summary

  • Core Issue: The Project withdrew funds twice for the same work, misusing $1,285 from the replacement reserve account.
  • Impacted Requirements: HUD guidelines require submission of paid invoices with the HUD-9250 form for reimbursement requests.
  • Recommended Follow-Up: Ensure the new 3-step review process for HUD submissions is consistently followed to prevent future errors.

Finding Text

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended December 31, 2022. Sample Size Information: All replacement reserve withdrawals for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should provide a copy of the paid invoices with the HUD-9250 form when requesting reimbursement for completed work. Statement of Condition: The Project withdrew replacement reserve funds twice for the same work that was performed. Cause: Management requested funds for the same work performed using the proposal and then again when the invoice was received. Effect or Potential Effect: The Project misused $1,285 in funds from the replacement reserve account. Auditor Non-Compliance Code: A ? Unauthorized withdrawals from replacement reserve account Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should return the excess withdrawal to the replacement reserve account. Response Indicator: Agree. Completion Date: 03/16/2023 Response: Management has implemented a 3-step review process for all 9250?s prior to submitting them to HUD. In addition, the duplicated funds have been returned to the replacement reserve account.

Categories

Cash Management 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 $9.37M
14.239 Home Investment Partnerships Program - Home $1.65M
14.157 Supportive Housing for the Elderly - Prac $528,670