Issue: A disbursement was made from a restricted account without HUD approval.
Trend: This error highlights a need for stricter controls on disbursements to prevent unauthorized transactions.
Follow-up: Review and reinforce approval processes for restricted account disbursements to avoid future errors.
Finding Text
HUD APPROVAL WAS NOT GRANTED FOR A DISBURSEMENT FROM A RESTRICTED ACCOUNT. THE DISBURSEMENT WAS MADE TO GRACE MEADOWS IN ERROR AND WAS REPAID ON JANUARY 25, 2024.
Corrective Action Plan
MANAGEMENT AGREES WITH THE FINDING. HUD APPROVAL WAS NOT GRANTED FOR A DISBURSEMENT FROM A RESTRICTED ACCOUNT. THE DISBURSEMENT WAS MADE TO GRACE MEADOWS IN ERROR AND WAS REPAID ON JANUARY 25, 2024.