Finding 12994 (2022-001)

Findings reference number: 2022-001 Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (AL 14.181) Type of finding: Compliance Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Withdrawals from the residual receipt account should be approved by HUD. Condition: A withdrawal was made from the residual receipt account without HUD's approval. The funds were transferred to the operating account to pay for operating expenses. Cause: The Project did not have enough funds to pay its vendors. Effect: The Project may not have sufficient funds in the future to pay for major repairs and replacements. Noncompliance code: C, Unauthorized withdrawals from Residual Receipts account Questioned costs: N/A. Reporting views of officials: Management agrees with the finding. Contract Number: 114HD031 Context: The Project has practically no liquidity. Recommendation: The Project should bring this matter to the attention of the Center and request an injection of funds in fiscal 2023 to replace the funds withdrawn. Auditors' summary of auditee's comments: They are in agreement. Completion date: 8/31/2023 Response: Management has consulted the Center on this matter.