Finding Text
Federal program - Section 202: Criteria - HUD regulations specify withdrawals from the replacement reserve should be for allowable project costs paid; Condition - one of the withdrawals during the year was a duplicate withdrawal totaling $6,309 that was approved and withdrawn previously in 2021 and another withdrawal totaling $37,792 did not have sufficient backup to ascertain the amounts requested; Cause - prior management agent oversight for the duplicate request and withdrawal, unavailable documentation for the second request and withdrawal; Recommendation - the current management agent should transfer funds from the operating account for the $6,309 duplicate withdrawal and request backup for the second withdrawal from the prior management agent. Response: The current management agent will request that the prior management agent or HUD provide sufficient documentation for the second withdrawal and will transfer the $6,309 excess funds withdrawn.