Finding Text
Condition: The Project completed a withdraw request on a U.S Department of Housing and Urban Development Funds Authorization form that was in excess of the actual invoice by $885. In addition, the Project requested withdrawals from the replacement reserve for allowable costs of $15,784 and did not properly complete the transfer by the year ended December 31, 2025. Criteria: The Project may only distribute funds from the replacement reserve upon approval from HUD and for costs related to repair and replacement needs. Cause: Management oversight. Effect: The Project is in violation of its regulatory agreement. Recommendation: The Project should replenish the replacement reserve account for the $885 that was withdrawn in error and should replenish operating cash for the $15,784 that was approved to be withdrawn from the replacement reserve for allowable costs. View of Responsible Officials: The Project agrees with the finding and will reconcile the replacement reserve account by transferring $14,899 from the replacement reserve to the operating account to properly reconcile the replacement reserve for the allowable costs and withdrawals approved by HUD.