Finding 2025-003
material weaknessmodified opinion
- Program
- HOUSING VOUCHER CLUSTER (14.871); SECTION 8 PROJECT-BASED CLUSTER (14.182)
- Compliance requirement
- Activities allowed or unallowed
- FAC record
- FY2025 audit on fac.gov
Finding text from the filing
2025-003 HUD Project loan made to other HUD Programs
Criteria:
HUD has certain regulations and procedures which should be followed by the Authority. Specifically, HUD project should not advance loans to other HUD programs.
Condition:
At year end, the Authority had the following inter-program receivable/payable between HUD and USDA programs:
Due From/Due To Low Rent HCV Sec 8 N/C (Corazon Square)
Due from HCV $ 36,079 $ --- $ --- Due from Sec 8 N/C 121,521 Due to Low Rent --- (36,079) (121,521)
Questioned Costs:
None noted.
Effect:
HUD funds were advanced to other HUD programs.
Cause:
It appears that the Low Rent program assisted the HCV and Sec 8 N/C program in paying for payroll and certain contract costs.
Recommendation:
I recommend that the Authority implement a plan whereby the HCV and Sec 8 N/C programs can re-pay Low Rent program for all expenses all receivable/payable are liquidated in a timely manner.
Management’s Response:
The submissions from our CPA Accounting Firm (Urlaub) were delayed in submitting reports on how much funding was to be transferred from Corazon Square to Low Rent. Staff changes occurred two times in our fiscal year ending 2025 with our CPA, and currently we are on our third point of contact with Urlaub.
The Trinidad Housing Authority is currently exploring options for receiving this information in a timely manner, so transfers are completed on time and correctly.