Finding 605500 (2022-002)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-14
Audit: 29953
Organization: Golden Ridge Housing Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: The property borrowed $7,558 from the replacement reserve without timely repayment upon receiving HUD subsidy funds.
  • Impacted Requirements: Authorized interim loans must be repaid when the HUD subsidy is received, indicating a management oversight.
  • Recommended Follow-Up: Management should ensure the loan is repaid promptly by transferring operating funds to the reserve.

Finding Text

Federal program - Section 202: Criteria - Authorized interim loans from the replacement reserve are to be repaid when the HUD subsidy is received; Condition - during May, the property borrowed $7,558 from the replacement reserve in anticipation of receiving a late subsidy for the month and upon receipt of those subsidy funds, the loan was to be repaid; Cause - management oversight; Recommendation - management should repay the funds loaned from the replacement reserve. Response: Management will transfer operating funds to the reserve to repay the advance.

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $92,004