Finding Text
Condition - One expenditure in the amount of $4,368 belonged to another project and was paid by Stevens Senior Housing of Ludlow, Inc.
Context - Forty expenditures totaling $108,378 were sampled out of a total population of two hundred seventeen expenditures totaling $285,867.
Criteria - In accordance with the OMB Compliance Supplement, project funds must be used for the operation of the project (including required insurance coverage) and to make required deposits to replacement reserve and the residual receipts accounts.
Cause - Due to an administrative error, the invoice was erroneously coded to Stevens Senior Housing of Ludlow, Inc.
Effect - Project funds paid for an expenditure that did not relate to the Project’s operations.
Questioned Costs - None
Repeat Finding - No
Recommendation - We recommend that management return the $4,368 to the Project's operating account.
Management Response - Management agrees with the finding. See management’s attached corrective action plan.