Finding Text
2025-002 Reportable Condition – Compliance:
Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Reserve for Replacements account.
Condition: The Organization did not receive HUD authorization for two withdrawals totaling $2,500 during the year.
Questioned cost: None
Context: Occurring within the current accounting period.
Cause: Management distributed money without HUD approval.
Effect: The Project is not in compliance with the regulatory agreement.
Recommendation: The Project should refund the distribution.
Repeat finding: No
Views of responsible official and planned corrective action: The current management agent concurs and will take immediate corrective action.