Finding 29139 (2022-001)

Finding No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended September 30, 2022. Sample Size Information: All replacement reserve withdrawals for the year ended September 30, 2022. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should provide a copy of the paid invoice with the HUD-9250 form when requesting reimbursement for completed work, and duplicate reimbursements should not be made. Statement of Condition: Withdrawals from the replacement reserve account were made using duplicate and/or incorrect invoices resulting in total excess withdrawals from the replacement reserve account of $7,979. Cause: The Project requested and received duplicate reimbursements of three invoices totaling $7,939 that were not promptly returned to the replacement reserve account. In addition, the Project did not return $40 to the replacement reserve account for an overcharged vendor invoice that was reimbursed from the replacement reserve account. Effect or Potential Effect: The Project misused the funds from the replacement reserve account. Auditor Non-Compliance Cod e : 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 withdrawals to the replacement reserve account. Response Indicator: Agree. Completion Date: 9/30/2023 Response: Management has incorporated 9250 training into both the new hire training and the annual managers conference training.