Finding Text
2022-002 ? Activities Allowed or Unallowed: Loans to Related Parties Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Repeat of 9/30/21 Finding 2021-002 (Originally reported as finding 2019-005 and 2019-010 at 09/30/19) Criteria: 24 CFR 990.280(b) permits the use of Public and Indian Housing Program (PIH) for specific project related operating expenses. It does not permit such amounts to be loaned to related parties. Condition: In prior years, the Authority had loaned PIH monies to related parties. As of September 30, 2022, approximately $209,000 of PIH loans remain outstanding to related parties and approximately $127,000 to other programs of the Authority. Cause: Management of the Authority in prior years (who were different individuals than the current management of the Authority) either did not understand or did not follow federal guidelines. Effect: PIH monies were used for unallowed purposes. Questioned Costs: None. Recommendation: Management of the Authority should continue to pursue collections of these amounts. Views of Responsible Officials of the Auditee: Current management of the Authority understands these federal guidelines, has stopped any further loans of PIH monies to related parties or other programs and is actively pursuing collection efforts.