Finding 1080444 (2024-001)

FINDINGS – FINANCIAL STATEMENTS AUDIT S2700-005 Finding Reference Number 2024-01 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project is required to fund a residual receipts account, and any withdrawals must be approved by HUD. S2700-010 Statement of Condition The Project withdrew $579 from the residual receipts account and deposited the funds into the reserve for replacement account without HUD approval. S2700-020 Criteria Project is required to have HUD approval for any withdrawals from the residual receipts account. S2700-030 Effect The residual receipts account was not funded as required by HUD. S2700-040 Cause The Project withdrew funds from the residual receipts account without HUD approval. S2700-050 Recommendation The Project should deposit $579 into the residual receipts account. Management should ensure controls are in place to make required yearly residual receipts deposits based on surplus cash calculations. Management should also ensure controls are in place to avoid making unauthorized withdrawals from this account. S2700-055 Auditor Non-Compliance Code C - Unauthorized withdrawals from residual receipts account S2700-065 Amount of Questioned Costs $579 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date October 3, 2024 S2700-090 Actions Taken or Planned on the Finding Management has implemented controls to prevent withdrawals from the account without HUD approval.