Finding 975771 (2023-003)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-05-31

AI Summary

  • Core Issue: Payments were made for services to a related party instead of the Organization, violating the Regulatory Agreement.
  • Impacted Requirements: Funds must only be used for services that are actually rendered to the Organization and necessary for its operation.
  • Recommended Follow-Up: Implement stronger controls at the Management Agent, including a secondary review to verify that payments are for services rendered to the Organization.

Finding Text

Criteria: According to the Regulatory Agreement, the Organization “shall not make any payments for services, supplies, or materials unless such services are actually rendered for the project… and are reasonably necessary for its operation.” Condition: The Organization mistakenly made payments to a vendor for services provided to a separate, related party. Cause: A process control at the Management Agent to ensure that Project funds were used to pay services provided to the Organization failed to work as intended. The services were rendered to an entity with a similar name. Effect: Project funds were used to pay for expenses provided to another entity. Recommendation: The Organization should ensure controls in place at the Management Agent include verification that all payments made from Project funds are for services rendered to the Organization, including secondary review. Views of Responsible Officials: The Organization agrees with the finding and the recommendation will be implemented. Condition Status: Closed Repeat Finding: No

Categories

Questioned Costs

Other Findings in this Audit

  • 399324 2023-001
    Significant Deficiency Repeat
  • 399325 2023-001
    Significant Deficiency Repeat
  • 399326 2023-002
    Significant Deficiency
  • 399327 2023-002
    Significant Deficiency
  • 399328 2023-003
    Significant Deficiency
  • 399329 2023-003
    Significant Deficiency
  • 399330 2023-004
    Significant Deficiency
  • 399331 2023-004
    Significant Deficiency
  • 975766 2023-001
    Significant Deficiency Repeat
  • 975767 2023-001
    Significant Deficiency Repeat
  • 975768 2023-002
    Significant Deficiency
  • 975769 2023-002
    Significant Deficiency
  • 975770 2023-003
    Significant Deficiency
  • 975772 2023-004
    Significant Deficiency
  • 975773 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $259,178