Finding 30810 (2022-001)

-
Requirement
LN
Questioned Costs
$1
Year
2022
Accepted
2022-12-26

AI Summary

  • Core Issue: Disbursements from restricted funds were made without required HUD approval.
  • Impacted Requirements: Regulatory agreement mandates written consent from HUD before any disbursement.
  • Recommended Follow-Up: Ensure management returns $4,027 to the replacement reserve account as agreed.

Finding Text

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: Unresolved Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: According to the regulatory agreement, disbursements from restricted funds may only be made after receiving written consent from HUD. Statement of Condition: HUD approval was not granted for disbursements from the restricted accounts. Cause: An approved disbursement was withdrawn twice. Effect or Potential Effect: The restricted account is underfunded by the amount of the withdrawal. Auditor Non-Compliance Code: A Questioned Costs: $4,027 Reporting Views of Responsible Officials: Management agrees with the finding. Management will return the funds to the replacement reserve account. Context: HUD approval was not granted for disbursements from the restricted accounts. Recommendation: Management should return the funds to the replacement reserve account. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. Management will return the funds to the replacement reserve account. Response Indicator: Agree Completion Date: August 16, 2022 Response: Management agrees with the finding. Management will return the funds to the replacement reserve account.

Corrective Action Plan

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. Management will return the funds to the replacement reserve account. Completion Date: August 16, 2022

Categories

Questioned Costs HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $4.85M
14.218 Community Development Block Grants/entitlement Grants $45,000