Finding 618540 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-05-09

AI Summary

  • Core Issue: The Community improperly paid $13,772 in payroll expenses for another community, violating the Regulatory Agreement.
  • Impacted Requirements: Payments must only be made for services rendered or materials delivered to the Community, as stated in Section 11 (c) of the Regulatory Agreement.
  • Recommended Follow-Up: Ensure the other community reimburses the Community for the $13,772 to resolve the compliance issue.

Finding Text

Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing 14.181 (073-HD015-NP-HIV and 1995) Auditor non-compliance code: G - Unauthorized loans from project funds Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size population size is not applicable to the finding. Statistically valid sample: No Name of federal agency: U.S. Department of Housing and Urban Development Pass through entity: N/A Questioned costs: 13,772 Statement of condition #2022-002: During the year ended December 31, 2022, the Community paid for payroll expenditures on behalf of another community managed by the Agent totaling $13,772. Criteria: Pursuant to Section 11 (c) of the Regulatory Agreement, neither the Community nor its agents shall make any payments for services, supplies or materials unless such services are actually rendered for the community or such supplies or materials are delivered to the Community and are reasonably necessary for its operation. Effect: The Corporation is not in compliance with the Regulatory Agreement. The Community's operating cash account has been reduced by $13,772. Cause: The Community paid payroll expenditures on behalf of another community managed by the Agent due to an error in allocating the expenses. Recommendation: The other community managed by the Agent should reimburse the Community in the amount of $13,772. Completion date: In process Management's response: Agree. The other community managed by the Agent will reimburse the Community $13,772.

Categories

Questioned Costs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42095 2022-001
    Significant Deficiency Repeat
  • 42096 2022-002
    Significant Deficiency
  • 42097 2022-001
    Significant Deficiency Repeat
  • 42098 2022-002
    Significant Deficiency
  • 618537 2022-001
    Significant Deficiency Repeat
  • 618538 2022-002
    Significant Deficiency
  • 618539 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $207,159