FAC Explorer

Finding 496968 (2024-001)

-
Requirement
P
Questioned Costs
$1
Year
2024
Accepted
2024-09-16
Audit: 319710
Organization: Grandview Square Cooperative, Inc. (IN)
Auditor: Comer Nowling and Associates PC

AI Summary

  • Issue: The Cooperative withdrew more than 20% from the general operating reserve without HUD approval.
  • Trend: This practice could lead to compliance risks and potential financial instability.
  • Follow-up: Ensure all future withdrawals over the limit receive proper HUD approval.

Finding Text

The Cooperative did not obtain approval from HUD for withdrawals from the general operating reserve in excess of 20% of the prior year’s ending balance.

Corrective Action Plan

Total annual withdrawals made from the general operating reserve were in excess of 20% of prior year’s ending balance. Management will obtain approval from HUD for withdrawals made from the general operating reserve during the year ended May 31, 2024 in the amount of $115,500.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.126 Mortgage Insurance_cooperative Projects $1.08M
14.195 Section 8 Housing Assistance Payments Program $111,143
14.103 Interest Reduction Payments_rental and Cooperative Housing for Lower Income Families $10,524