Finding Text
S2700-005 Finding Reference Number 2024-03
S2700-006 Finding Status Ongoing
S2700-007 Population Size N/A
S2700-008 Sample Size N/A
S2700-009 Noncompliance Information The Capital Advance Agreement prohibits
unauthorized withdrawal from replacement
reserve.
S2700-010 Statement of Condition Unauthorized withdrawal from replacement
reserve of $5,605.
S2700-020 Criteria Withdrawals from the replacement reserve are to
be made only with the consent of HUD.
S2700-030 Effect Potential violation of capital advance agreement.
S2700-040 Cause Insufficient cash flow created by rental income
that is insufficient to meet increases in operating
costs.
S2700-050 Recommendation Management should prioritize repaying this
unauthorized withdrawal as soon as additional
cash flow from a recent rent increase makes it
possible.
S2700-055 Auditor Non-Compliance Code A - Unauthorized withdrawals from replacement
reserve account
S2700-065 Amount of Questioned Costs $5,605
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 December 18, 2024
S2700-090 Actions Taken or Planned on
the Finding
Management agrees with the finding will take
action to implement the recommendation as
soon as cash flow allows.