Finding 405721 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-07-01

AI Summary

  • Core Issue: Funds totaling $3,029 were withdrawn from the replacement reserve account without verifying they hadn't been previously used.
  • Impacted Requirements: Withdrawals must be timely and accurately matched to invoices to prevent misuse of funds.
  • Recommended Follow-Up: Management should ensure invoices are checked against prior requests and paid promptly after withdrawal.

Finding Text

Finding number2023-001 CFDA Number:14.157 - Supportive Housing for the Elderly Grantor: HUD Questioned Costs: $0 Description of Condition: Withdrawals from the replacement reserve account must be expended within a timely manner after removal from the reserve account. Funds totaling $3,029 were approved and withdrawn for invoices previously approved and withdrawn on prior requests. Cause of the Condition: Care was not taken when preparing the reserve request to determine amounts requested were not already used on prior requests. Effect of the Condition: Funds withdrawn from the replacement reserve may have been used for other purposes. Recommendations: When preparing reserve requests management should match invoices to the request and make sure invoices have not been used for previous requests. In addition, invoices not already paid, should be timely paid after the withdrawal is made.

Corrective Action Plan

Finding number 2023-001 CFDA Number:14.157 – Supportive Housing for the Elderly Recommendations: When preparing reserve requests management should match invoices to the request and make sure invoices not already paid are paid timely paid after the withdrawal is made and have not been used for previous requests. Management Response: Management’s internal process for tracking and reviewing Replacement Reserve requests was revised in October 2023. The procedure now involves internal reviews of invoices by two separate parties, as well as an on-going shared tracking system for requests, prior to submission to avoid duplication.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $956,018
14.157 Supportive Housing for the Elderly $162,367