Finding 20272 (2022-001)

S3800-010: Finding Reference Number 2022-001 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly ? Section 202 Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N ? Special Tests and Provisions S3800-015: Type of Finding Federal Awards Finding S3800-016: Finding Resolution Status In-progress S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 24 CFR sections 891.405 and 891.605, all disbursements from the replacement reserve account must be approved by HUD and for the approved purpose. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted that the Organization received a $10,724 withdrawal from the replacement reserve account on June 23, 2023, which was not approved by HUD. S3800-032: Cause The Organization withdrew an unapproved amount from their reserve for replacement account. S3800-033: Effect or Potential Effect The withdrawal was not approved by HUD. S3800-035: Auditor Non-Compliance Code: A ? Unauthorized withdrawals from replacement reserve account S3800-040: Questioned Costs $10,724 S3800-045: Reporting Views of Responsible Officials The Organization agreed with this finding. S3800-050: Context The Organization is required to receive HUD approval for all withdrawals from the replacement reserve account. S3800-080: Recommendation The Auditor recommends the Organization request retroactive approval from HUD for the unauthorized withdrawal. S3800-090: Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date April 30, 2023 S3800-150: Response See Corrective Action Plan.