Finding 1148367 (2024-001)

Finding 2024-001 Finding Resolution Status: Resolved Population Size: 7 Sample Size: 7 Noncompliance Information: I tested seven replacement reserve withdrawals and found noncompliance in two withdrawals. Condition: The Project claimed duplicate expenses (PTAC Units for Unit #112 and #214 and hot water heater for #211) in the March 25, 2024, replacement withdrawal request and again in the July 8, 2024, replacement withdrawal request. Criteria: As part of the HUD regulations, reserve withdrawals for repairs and capital purchases must be supported by checks and invoices and can only be requested once. Effect: Project erroneously withdrew $2,077.59 for these duplicate items. Cause: Management agent oversight. Recommendation: The management agent should reimbursement the replacement reserve account for the excess withdrawal of $2,077.59. Questioned Costs: $2,077.59