Finding Text
Agency: U.S. Department of Housing and Urban Development (HUD) CFDA Number: 14.164 Program: Operating Assistance Flexible Subsidy Loans Statement of condition: The Organization's Operating Assistance Flexible Subsidy Loans have matured. The term of the loans require full repayment of the Operating Assistance Flexible Subsidy Loans within 30 days after they mature. Criteria: The HUD Handbook 4350.1 requires the Organization to timely file for deferment of repayment if they cannot repay the loan within 30 days of maturity. Questioned costs: N/A Effect: The Organization was not in compliance with HUD regulations. Cause: Management has been in negotiations with HUD to obtain deferment of repayment. Repeat finding: Yes, previously reported as 2021-001. Recommendation: We recommend that management continue to work with HUD to obtain proper deferment of the Operating Assistance Flexible Subsidy Loans. Management's Response: See attached management's response and planned corrective actions.