Condition - The reserve for replacements account is underfunded by $4,749 for the year ended December 31, 2022. A withdrawal of $7,516 was made without HUD approval. Criteria - HUD requires that the reserve for replacements account to be funded by $1,583 monthly and that all withdrawals require HUD approval. Effect - The Corporation was not in compliance with the above HUD regulations. Questioned Cost - $7,516 Cause - The reserve for replacements account was not funded for three months during the year due to poor cash flow and a withdrawal was made without prior HUD approval to support cash flow. Recommendation - We recommended that the delinquent deposits totaling $4,749 for the year ended December 31, 2022 be deposited into the reserve for replacements accounts as soon as possible. We also recommend that approval is obtained for any withdrawals from the reserve for replacement in accordance with HUD guidelines. Management?s Reply - Management will deposit the amount of $4,749 as soon as cash flow permits. Management will obtain HUD?s approval for any withdrawals from reserve for replacements.
Condition - The Corporation provided operating funds, related to shared employees, totaling $17,826 to another organization without obtaining approval from HUD. Criteria - HUD requires all project funds to be used only for expenses necessary for the operation of the project as provided for in the HUD regulatory agreement. Effect - The Corporation is in violation of its regulatory agreement with HUD. Questioned Cost - $17,826 Cause - The Corporation provided operating funds, related to shared employees, to another organization. Recommendation - We recommended that the funds of $17,826 be immediately deposited into the Corporation?s operations and project funds are used only for necessary expenses for the operation of the project. Management?s Reply - Management will deposit $17,826 into the project?s operating account as soon as possible and only use project funds for the necessary expenses of operating the project.
Condition - The reserve for replacements account is underfunded by $4,749 for the year ended December 31, 2022. A withdrawal of $7,516 was made without HUD approval. Criteria - HUD requires that the reserve for replacements account to be funded by $1,583 monthly and that all withdrawals require HUD approval. Effect - The Corporation was not in compliance with the above HUD regulations. Questioned Cost - $7,516 Cause - The reserve for replacements account was not funded for three months during the year due to poor cash flow and a withdrawal was made without prior HUD approval to support cash flow. Recommendation - We recommended that the delinquent deposits totaling $4,749 for the year ended December 31, 2022 be deposited into the reserve for replacements accounts as soon as possible. We also recommend that approval is obtained for any withdrawals from the reserve for replacement in accordance with HUD guidelines. Management?s Reply - Management will deposit the amount of $4,749 as soon as cash flow permits. Management will obtain HUD?s approval for any withdrawals from reserve for replacements.
Condition - The Corporation provided operating funds, related to shared employees, totaling $17,826 to another organization without obtaining approval from HUD. Criteria - HUD requires all project funds to be used only for expenses necessary for the operation of the project as provided for in the HUD regulatory agreement. Effect - The Corporation is in violation of its regulatory agreement with HUD. Questioned Cost - $17,826 Cause - The Corporation provided operating funds, related to shared employees, to another organization. Recommendation - We recommended that the funds of $17,826 be immediately deposited into the Corporation?s operations and project funds are used only for necessary expenses for the operation of the project. Management?s Reply - Management will deposit $17,826 into the project?s operating account as soon as possible and only use project funds for the necessary expenses of operating the project.
Condition - The reserve for replacements account is underfunded by $4,749 for the year ended December 31, 2022. A withdrawal of $7,516 was made without HUD approval. Criteria - HUD requires that the reserve for replacements account to be funded by $1,583 monthly and that all withdrawals require HUD approval. Effect - The Corporation was not in compliance with the above HUD regulations. Questioned Cost - $7,516 Cause - The reserve for replacements account was not funded for three months during the year due to poor cash flow and a withdrawal was made without prior HUD approval to support cash flow. Recommendation - We recommended that the delinquent deposits totaling $4,749 for the year ended December 31, 2022 be deposited into the reserve for replacements accounts as soon as possible. We also recommend that approval is obtained for any withdrawals from the reserve for replacement in accordance with HUD guidelines. Management?s Reply - Management will deposit the amount of $4,749 as soon as cash flow permits. Management will obtain HUD?s approval for any withdrawals from reserve for replacements.
Condition - The Corporation provided operating funds, related to shared employees, totaling $17,826 to another organization without obtaining approval from HUD. Criteria - HUD requires all project funds to be used only for expenses necessary for the operation of the project as provided for in the HUD regulatory agreement. Effect - The Corporation is in violation of its regulatory agreement with HUD. Questioned Cost - $17,826 Cause - The Corporation provided operating funds, related to shared employees, to another organization. Recommendation - We recommended that the funds of $17,826 be immediately deposited into the Corporation?s operations and project funds are used only for necessary expenses for the operation of the project. Management?s Reply - Management will deposit $17,826 into the project?s operating account as soon as possible and only use project funds for the necessary expenses of operating the project.
Condition - The reserve for replacements account is underfunded by $4,749 for the year ended December 31, 2022. A withdrawal of $7,516 was made without HUD approval. Criteria - HUD requires that the reserve for replacements account to be funded by $1,583 monthly and that all withdrawals require HUD approval. Effect - The Corporation was not in compliance with the above HUD regulations. Questioned Cost - $7,516 Cause - The reserve for replacements account was not funded for three months during the year due to poor cash flow and a withdrawal was made without prior HUD approval to support cash flow. Recommendation - We recommended that the delinquent deposits totaling $4,749 for the year ended December 31, 2022 be deposited into the reserve for replacements accounts as soon as possible. We also recommend that approval is obtained for any withdrawals from the reserve for replacement in accordance with HUD guidelines. Management?s Reply - Management will deposit the amount of $4,749 as soon as cash flow permits. Management will obtain HUD?s approval for any withdrawals from reserve for replacements.
Condition - The Corporation provided operating funds, related to shared employees, totaling $17,826 to another organization without obtaining approval from HUD. Criteria - HUD requires all project funds to be used only for expenses necessary for the operation of the project as provided for in the HUD regulatory agreement. Effect - The Corporation is in violation of its regulatory agreement with HUD. Questioned Cost - $17,826 Cause - The Corporation provided operating funds, related to shared employees, to another organization. Recommendation - We recommended that the funds of $17,826 be immediately deposited into the Corporation?s operations and project funds are used only for necessary expenses for the operation of the project. Management?s Reply - Management will deposit $17,826 into the project?s operating account as soon as possible and only use project funds for the necessary expenses of operating the project.