Finding 22162 (2022-001)

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended December 31, 2022. Sample Size Information: All replacement reserve withdrawals for the year ended December 31, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should provide a copy of the paid invoices with the HUD-9250 form when requesting reimbursement for completed work. Statement of Condition: The Project withdrew replacement reserve funds twice for the same work that was performed. Cause: Management requested funds for the same work performed using the proposal and then again when the invoice was received. Effect or Potential Effect: The Project misused $1,285 in funds from the replacement reserve account. Auditor Non-Compliance Code: A ? Unauthorized withdrawals from replacement reserve account Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should return the excess withdrawal to the replacement reserve account. Response Indicator: Agree. Completion Date: 03/16/2023 Response: Management has implemented a 3-step review process for all 9250?s prior to submitting them to HUD. In addition, the duplicated funds have been returned to the replacement reserve account.