Answer: Project funds must be spent on expenses that are essential for the project's operation.
Trend: Compliance with the Regulatory Agreement is crucial to avoid misuse of funds.
List: Review project expenses regularly to ensure they align with necessary operational costs.
Finding Text
Project funds may be used only for expenses that are reasonable and necessary to the operatioin of the project as provided for in the Regulatory Agreement between HUD and the project owner.
Corrective Action Plan
Management agrees with the finding. The funds will be reimbursed in the amount of $61,646.