Finding 946406 (2023-001)

Finding No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Total assistance revenue. Sample Size Information: All monthly PRAC requests. Identification of Repeat Finding and Finding Reference Number: Yes, 2022-001. Criteria: As required by HUD regulations, applications for renewal of PRAC must be submitted at least 120 days prior to the expiration date of the contract. Statement of Condition: The Project did not submit the renewal request at least 120 days prior to the expiration date of the contract. Cause: The Project did not adhere to HUD regulations for PRAC renewal. Effect or Potential Effect: Monthly PRAC funding was delayed resulting in the need to request short term loans from the replacement reserve account. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: Management should implement procedures to ensure the Project submits PRAC renewal requests in a timely manner. Response Indicator: Agree. Completion Date: 8/22/2023 Response: A system is being put in place to follow up with managers to remind them of renewals on a timely basis.