Finding Text
Information on the Universe Population Size Replacement reserve activity for the year ended December 31, 2024. Sample Size Information N/A Criteria In accordance with the Entity’s regulatory agreement with HUD, only upon approval from HUD can the Entity withdraw funds from the replacement reserve account. Statement of Condition The Entity withdrew $6,720.61 from the replacement reserve without the approval from HUD. Cause Due to shortage of funding and management oversight, the Entity withdrew replacement reserve funds. The transfer occurred prior to receiving HUD approval. Effect or Potential Effect The Entity is in violation of the requirements of its regulatory agreement. Auditor Non-Compliance Code A- Unauthorized withdrawal from replacement reserve account Questioned Costs There were no known questioned costs. Perspective The finding represents an isolated instance of management oversight. Repeat finding Yes, prior year finding 2023-002 Recommendations Auditor recommends that the Entity works with HUD in the future to insure approval prior to withdrawal. Views of Responsible officials Auditee agrees with this finding and reimbursed the replacement reserve account for this amount prior to audit issuance.