Finding Text
FINDING #2021-001 LATE PAYMENT OF CONSTRUCTION COSTS FROM LOUISIANA HOUSING FINANCE AGENCY LOAN AND INELIBIBLE COSTS
Type of Finding: Financial
Program: The Federal Program is HOME Investment Partnership Program (Assistance Listing 14.239) issued by the U.S. Department of Housing and Urban Development passed through to Louisiana Housing Finance Agency.
Condition: The sponsoring agency did not pay the contractor for Application No. 3, dated July 1, 2020, in the amount of $32,465 from the Louisiana Housing Finance Agency loan disbursements. There were checks written to the sponsor in November and December in the amount of $32,200 in error.
Criteria: The Louisiana Housing Corporation Nonprofit Open Cycle Affordable Housing Program Rental Development Regulatory Agreement requires that all HOME awards should be paid for eligible costs, as set forth in the regulatory agreement.
Effect: The checks written to the sponsor in the amount of $32,200 were not eligible costs.
Cause: This was an error by the sponsor.
Recommendation: We recommend that the entity develop internal controls that will prevent this occurrence in the future.
Views of Responsible Officials and Planned Corrective Action: Management will adopt controls to prevent this in the future.