Finding 970121 (2023-001)

AL# 10.415 U.S. Department of Agriculture - Rural Development Questioned Cost: $242 Criteria – 40 cash disbursements were tested and two were noted as applicable to other projects of the management company. Condition - Expenses charged to project operations, whether for management agent services or other expenses, must be reasonable, typical, necessary and show a clear benefit to the residents of the property. Cause – The two payments were from a credit card statement with multiple invoices for various properties and although the invoice clearly stated the allocable property this was missed upon entry into the general ledger. Effects or Potential Effects – The project paid for expenses that were not allocable to the project. Auditor’s Recommendation - Invoices should be scrutinized closely and applied to the appropriate project. View of Responsible Officials – Management agrees with the finding and has implemented a corrective action plan.