Finding 29170 (2022-002)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-05-30

AI Summary

  • Core Issue: The Corporation withdrew $35,000 from the reserve fund without HUD's authorization.
  • Impacted Requirements: Compliance with HUD regulations regarding fund withdrawals was not met.
  • Recommended Follow-Up: The Corporation should reimburse the reserve account as soon as funds are available.

Finding Text

Finding No. 2022-002 Statement of Condition: The Corporation made an unauthorized withdrawal from the reserve fund. Criteria: The Corporation is required to receive authorization from HUD prior to withdrawing funds from the replacement reserve fund. Questioned Costs: $35,000 Effect: The Corporation was not in compliance with the regulatory agreement. Cause: The Corporation withdrew cash from the reserve fund to pay for operating expenses due to delays in the PRAC being renewed. Recommendation: The Corporation should reimburse the reserve account when funds are available. Management Response: Management agrees with the finding and will reimburse the reserve account when funds are available.

Corrective Action Plan

Corrective Action Plan Prepared by: Name: Dave Cooper Position: President, Community Reinvestment Foundation, Inc. Telephone Number: 317-554-2100 A. Current Findings on the Schedule of Findings, Questioned Costs, and RecommendationsFinding No. 2022-002 A. Comments on the Finding and Each Recommendation: Management agrees with the finding. Management is aware withdrawals from reserve must have HUD approval. Withdrawal was required due to PRAC renewal being delayed. B. Action Taken or Planned on the Finding: Management will deposit the funds back into the replacement reserve when available.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $237,671