Finding Text
Finding reference number: 2026-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, CFDA No. 14.157 (Project identification number 102-EE022-WAH) Auditor non-compliance code: A – Unauthorized withdrawal from replacement reserve Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding Sample size information: The sample size information is not applicable to the finding Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $11,386 Statement of condition 2026-001: During the year ended May 31, 2026, management submitted HUD form 9250 to withdraw funds from the reserve for replacements fund that included the same invoice twice in error. Criteria: The HUD regulatory agreement authorizes the Secretary of HUD to effectively monitor withdrawals from the reserve for replacements fund. Withdrawals from the reserve for replacements account may be made only after receiving written consent from HUD. Effect: The Corporation was not in compliance with the terms of the CFR. At May 31, 2026, the Property's reserve for replacement account is underfunded by $11,386. Cause: Management inadvertently requested reimbursement for the same invoice twice from the reserve for replacements. Recommendation: Management should transfer $11,386 from the operating account to the reserve for replacements account. Completion date: August 11, 2026 Reporting views of responsible officials: Agree. Management concurs with the finding and recommendation. On August 11, 2026, management transferred $11,836 from the operating account to the reserve for replacements account.