Finding 1099151 (2024-004)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-11

AI Summary

  • Core Issue: The Project withdrew $1,025 from the replacement reserve without proper authorization.
  • Impacted Requirements: Withdrawals must be accompanied by an approved form HUD-9250 as per HUD guidelines.
  • Recommended Follow-Up: Ensure all future withdrawals have the necessary approvals and provide ongoing staff training on procedures.

Finding Text

FINDING No. 2024-004: Section 8 Project Based Rental Assistance ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2024. Sample Size Information: All replacement reserve deposits for the year ended June 30, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD requirements, any request to withdraw funds from the replacement reserve account must be accompanied by an approved form HUD-9250. Statement of Condition: The Project withdrew $1,025 of excess deposits without proper authorization. Cause: The Project did not obtain prior authorization for withdrawal of funds from the replacement reserve. Effect or Potential Effect: The Project's lack of proper authorization for fund withdrawals may result in the improper use of funds. Auditor Non-Compliance Code: A – Unauthorized withdrawals from replacement reserve account Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should ensure that all withdrawals from the replacement reserve account are accompanied by an approved form HUD-9250. Response Indicator: Agree. Completion Date: 06/30/2025 Response: Staff training has been provided to ensure proper procedures are followed.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $2.50M