Finding Text
2022-002 HUD Section 811 Capital Advance #14.181 Criteria: Rent and HAP payments are to be deposited monthly into the operating account. Condition: The Project did not receive and deposit its monthly HAP payments from November 2021 to June 2022 in a timely manner. Cause: There was a change in personnel submitting the HAP requests and did not meet the required compliance rate. Effect: The Project was not able to meet its cash flow needs timely. Questioned Costs: N/A Other Information: Eight of twelve HAP payments were not received timely. This was not a repeat finding. Recommendation: The Management Agent should closely monitor the compliance over HAP requests to ensure that the HAP deposits are received timely. Response: Management agrees with the finding and corrected the compliance issue and received the delinquent HAP funds in July 2022.