Finding Text
Over the Rainbow Association and Subsidiaries SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Hill Housing Facility Questioned Costs FINDING 2022-002: SECTION 8, ASSISTANCE LISITNG NUMBER 14.195 Condition: The Project repaid a portion of the sponsor loan payable (Due to Related Party) without obtaining HUD approval. The total amount of the unauthorized sponsor loan payment was $130,019. Criteria: HUD approval should be obtained prior to making a sponsor loan repayment. Effect: The Project's cash balance is $130,019 less than it should be. Context: The Sponsor loan payable at December 31, 2022 was tested. The test determined that a portion of the sponsor loan was repaid without obtaining HUD approval. Questioned Costs $130,019 Cause: The Project repaid a portion of the sponsor loan without obtaining HUD approval. Recommendation: The Sponsor should work with HUD to determine if the $130,019 needs to be paid back to the Project. Views of Responsible Officials and Planned Corrective Actions: The Sponsor will work with HUD to detemine if the $130,019 needs to be paid back to the Project. Total - Department of Housing and Urban Development $130,019 Non-compliance code - R