Finding Text
Statement of Condition: For the year ended December 31, 2025, the Organization requested and withdrew $13,006 from the Replacement Reserves account. Only $10,950 of this request was approved by HUD. Criteria: Per the regulatory agreement with HUD, the Organization may only withdraw amounts approved by HUD. Effect: Excess funds of $2,056 were withdrawn from the Replacement Reserves account. Cause: The Organization inadvertently withdrew the requested amount ($13,006) rather than the HUD approved amount ($10,950).Recommendation: The Organization should deposit these monies to Replacement Reserves as quickly as possible. Views of responsible officials and planned corrective actions – The Organization agrees with this finding. Please refer to the corrective action plan on page 35.