Finding Text
S3800-010: Finding Reference Number 2025-002 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly (Section 202) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N - Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the regulatory agreement subsection 5(c), withdrawals from the Residual Receipts account may be made only for project purposes and with the approval of HUD. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted that the Organization withdrew $732 from the residual receipts account on September 18, 2024, which was not approved by HUD. S3800-032: Cause Management thought that the account was an other operating bank account and did not know that the account held residual receipts. S3800-033: Effect or Potential Effect The withdrawal was not approved by HUD. S3800-035: Auditor Non-Compliance Code: C – Unauthorized withdrawals from residual receipts account S3800-040: Questioned Costs $732 S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to receive HUD approval for all withdrawals from the residual receipts account. S3800-080: Recommendation The Auditor recommends the Organization deposit $732 into the residual receipts account as soon as possible. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 31, 2025 S3800-150: Response See Corrective Action Plan