Finding Text
2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Expired Project Rental Assistance Contracts (PRAC). Condition: The Corporation did not renew the PRACs timely. Questioned costs: None. Context: The PRACs expired May 31, 2022, and 2021, and were not renewed until November 7, 2022, and February 14, 2022, respectively. Cause: Due to circumstances related to the COVID-19 Public Health Emergency, the Corporation did not renew the contracts timely. Effect: A PRAC is required for Housing Assistance Payments. Recommendation: The Corporation should ensure the PRAC is renewed on a timely basis annually. Views of Responsible Officials and Planned Corrective Actions: Managements acknowledges this finding and is taking steps to correct. Management has counseled HUD building management on the need for timely submissions of proposed budgets and contract completion. A master schedule has been set up and all budget submissions will now be reviewed by the Finance Department prior to submission.