Finding 599537 (2022-005)

-
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-10-30

AI Summary

  • Core Issue: Loans totaling $54,930 have been made to affiliated companies, violating HUD regulations.
  • Impacted Requirements: Loaning funds to other entities is prohibited under HUD guidelines.
  • Recommended Follow-Up: Repay the loans immediately and ensure future expenses are reimbursed promptly.

Finding Text

At June 30, 2022, loans totaling $54,930 have been made to other companies affiliated with management of Henderson County Health Care Corporation - Two. Criteria. Loaning of funds to other entities is prohibited by HUD regulations. Cause. Management processes payroll and some other expenditures through Henderson County Health Care Corporation - Two and is then to repay the portion of the payroll and other expenses that are attributed to other companies. These repayments are not being made at the time of the expenditure, thus the amounts due from these companies has grown significantly. Effect. The complex is in violation of HUD requirements. Recommendation. We recommend that these loans be repaid immediately, and future payroll costs and other expenditures paid by Henderson County Health Care Corporation - Two, be repaid immediately upon the processing of these expenditures.

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.51M
14.195 Section 8 Housing Assistance Payments Program $650,892