Finding Text
Section III - Finding and Questioned Costs - Major Federal Program Audit Department of Housing and Urban Development Finding No. 2022-001; Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 Criteria Any withdrawal from the replacement reserve account requires HUD approval and should be for costs of the Project. Condition During the year ended June 30, 2022, management withdrew $42,636 from the replacement reserve account for costs incurred by a different project. Cause The amount was withdrawn from the replacement reserve account of the wrong Project in error. Effect or Potential Effect The withdrawal of $42,636 is an unauthorized withdrawal from the replacement reserve account. Questioned Costs N/A Context The error was self-identified by management. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should immediately have the Project reimbursed by the other entity for the $42,636 and deposit the amount back into the replacement reserve. Auditor Noncompliance Code: A - Unauthorized withdrawals from replacement reserve account. Finding Resolution Status: Resolved.