Finding 392741 (2023-001)

S3800-010 Finding reference number 2023-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding and Internal Control over Compliance S3800-016 Finding resolution status Complete S3800-017 Information on universe population size not applicable S3800-018 Sample size information not applicable S3800-019 Identification of repeat finding and finding reference number not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that HUD approval is required for replacement reserve withdrawals. S3800-030 Statement of condition The Organization made a withdrawal of $5,800 that was not approved by HUD from the replacement reserve account. S3800-032 Cause Management made distribution in error S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary capital obligations of the project. S3800-035 Auditor non-compliance code A - Unauthorized withdrawals from replacement reserve account S3800-037 FHA/Contract number 074-EE009 S3800-040 Questioned costs $0 S3800-045 Reporting views of responsible officials Management agrees. S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before distributions from the replacement reserve account are authorized. S3800-090 Auditors' summary of the auditee's comments on the findings and recommendations Management concurs. S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date January 5, 2024 S3800-150 Response Management has refunded the distribution made in error.