Finding Text
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2024) Auditor non-compliance code: A - Unauthorized withdrawal from the replacement reserve Finding resolution status: Resolved Universe population size: 1 invoice from 1 HUD unapproved 9250 withdrawal Sample size information: 1 invoice from 1 HUD unapproved 9250 withdrawal Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $16,954 Statement of condition #2024-003: The Corporation did not obtain HUD approval for a replacement reserve withdrawal totaling $16,954 during the year ended December 31, 2024. Criteria: Pursuant to the Regulatory Agreement, any funds in the replacement reserve account are to be maintained and require all disbursements from the account receive prior approval from HUD. Effect: The replacement reserve account is underfunded by $16,954 related to an unapproved withdrawal. Cause: Management withdrew the funds from the replacement reserve account prior to obtaining HUD approval. Recommendation: Management should transfer $16,954 from the operating account to the replacement reserve account. Management's response: Management concurs with the finding and transferred $16,954 on March 4, 2025 from the operating account to the replacement reserve account.