Finding Text
Finding Reference Number: 2022-01 Title and Federal Assistance Listing Number of Federal Program: Section 202 Capital Advance and Project Assistance Rental #14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable Identification of Repeat Finding and Finding Reference Number: Not Applicable Criteria: Neither the mortgagor nor its agents shall make any payments for services, supplies, or materials unless such services are actually rendered for the project or such supplies or materials are delivered to the project and are necessary for its operation. Statement of Condition: During the year ended December 31, 2022, the Project paid several expenses on behalf of an adjacent project. Cause: Clerical error of invoices being paid from the wrong cash account. Effect or Potential Effect: Amounts paid on behalf of another project is considered an unauthorized disbursement of Project assets per the Regulatory Agreement. Auditor Non-Compliance Code: Z - Other Questioned Costs: $21,455 Reportable Views of Responsible Officials: Management is in agreement with the finding, and will contact the necessary parties for reimbursement. Context: Not applicable Recommendation: Management should review procedures surrounding the payment of invoices to ensure funds are being drawn from the correct account. Auditors? Summary of the Auditee?s Comments on the Findings and Recommendations: Management will be more diligent about ensuring the accuracy of invoice payments in the future. Response Indicator: Agree Completion Date: 12/31/2023 Response: Management has spoken to the necessary personnel tasked with recording payments of invoices and reemphasized the importance of paying only invoices relevant to the Property.