Finding Text
Finding 2022-001 Allowable Costs Statement of condition: The Organization repaid $7,200 on a related party loan without surplus cash or HUD approval. Criteria: Activities allowed or un-allowed of the Uniform Guidance requires the Organization only spends funds on items that are necessary and reasonable for the Project?s operations. Effect or potential effect: The Organization is not in compliance with Uniform Guidance. Cause: The board of directors requested the Organization make payments on the related party loan. Recommendation: The Organization should seek reimbursement of the $7,200 paid during 2022 and the $6,000 paid during 2021 on the related party loan, or seek approval from the Department of Housing and Urban Development. Reporting views of responsible officials: Our organization is a non-profit entity. Our funds were depleted during the covid pandemic to the point our only available asset was the loan we made to Penn Manor several years ago. So we requested the loan be repaid at an amount the Manor could afford. We apologize for any wrong doing and ask for forgiveness or the error and permission to continue with the repayment so we can continue to operate. Again we do apologize and ask forgiveness.