Finding 623396 (2022-001)

-
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2022-12-26

AI Summary

  • Core Issue: The project mistakenly paid $6,570 in expenses for another project, violating funding criteria.
  • Impacted Requirements: Project funds must only cover reasonable and necessary expenses as per HUD regulations.
  • Recommended Follow-Up: Ensure the related project reimburses the $6,570 to correct the error.

Finding Text

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Project funds may be used only for expenses that are reasonable and necessary to the operation of the project as provided for in the Regulatory Agreement between HUD and the project owner. Statement of Condition: The project paid expenses on behalf of another project in the amount of $6,570. Cause: Management processed an invoice for a related project out of the project?s accounts in error. Effect or Potential Effect: The property has a receivable from the related project in the amount of $6,570. Auditor Non-Compliance Code: G Questioned Costs: $6,570 Reporting Views of Responsible Officials: Management agrees with the finding. The related project will reimburse the Project for the costs in the amount of $6,570. Context: The project paid expenses on behalf of another project in the amount of $6,570. Recommendation: The related project should reimburse the Project for the costs paid. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The related project will reimburse the Project for the costs in the amount of $6,570. Response Indicator: Agree Completion Date: August 11, 2022 Response: Management agrees with the finding. The related project will reimburse the Project for the costs in the amount of $6,570.

Categories

Questioned Costs HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $5.75M
14.239 Home Investment Partnerships Program $100,000