Finding 613459 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-12

AI Summary

  • Core Issue: The Project failed to renew the PRAC contract within the required 120 days, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Timely renewal of PRAC contracts as mandated by HUD to avoid delays in receiving HAP funds.
  • Recommended Follow-Up: Ensure ongoing compliance by monitoring new procedures and hiring a compliance coordinator to facilitate timely renewals.

Finding Text

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total rent revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, applications for renewal of PRAC contracts must be completed within 120 days of the PRAC expiration. Statement of Condition: The Project did not complete the renewal process within 120 days of the contract expiration. Cause: The Project did not follow HUD regulations for a timely contract renewal. Effect or Potential Effect: The Project is not in compliance with HUD regulations for a timely renewal of the PRAC contract resulting in delayed receipt of HAP funds. Auditor Non-Compliance Code: R ? Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: The Project should comply with HUD regulations for a timely renewal of the PRAC contract to ensure no interruption in funding. Response Indicator: Agree. Completion Date: 4/14/2022 Response: Management has implemented new procedures for PRAC contract renewals and is in the process of hiring a compliance coordinator to assist with ensuring all HUD regulations are met timely.

Categories

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 $1.08M
14.157 Supportive Housing for the Elderly - Prac $140,526
14.157 Supportive Housing for the Elderly - Covid-19 Csp Prac $1,092