Finding Text
Criteria Any withdrawal from the residual receipts reserve required HUD approval. Condition During the year ended June 30, 2025, management withdrew $17,222 from the residual receipts reserve without HUD approval. Cause The amount was withdrawn in error due to a misunderstanding of the various reserves during the transition of management agents. Effect or Potential Effect The withdrawal of $17,222 is an unauthorized withdrawal from the residual receipts reserve. Questioned Costs $17,222 Identification as a Repeat Finding This finding is not a repeat finding. Recommendation Management should immediately transfer the funds back to the residual receipts reserve. Auditor Noncompliance Code: C. Unauthorized withdrawal from residual receipts accounts. View of Responsible Officials Management agrees with the findings and recommendations, this finding has been resolved. Finding Resolution Status: Resolved