Finding Text
Finding reference number: #2024-001
Assistance Listing title and number (Federal award identification number and year):
Supportive Housing for Persons with Disabilities, Assistance Listing 14.181, 2003
Auditor non-compliance code: A – Unauthorized withdrawal from reserve for replacements
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $4,613
Statement of condition #2024-001: During the year ended June 30, 2024, management submitted
a 9250 to withdraw funds from the reserve for replacements fund that included two of the same
invoices as a previously approved 9250. The reserve for replacements account was not reimbursed for
the duplicate withdrawal.
Criteria: Pursuant to Section 5(a) of the Regulatory Agreement, reserve for replacements withdrawal
may be made only after receiving written consent from HUD. Pursuant to HUD regulations,
expenditures covered by withdrawals from the reserve for replacements fund are to be used for the
purpose authorized by HUD.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve
for replacements account is underfunded by $4,613.
Cause: Two invoices were used twice in error.
Recommendation: Management should transfer $4,613 from the operating account to the reserve
for replacements account.
Completion date: September 18, 2024
Management response: Management concurs with the finding and the auditor's recommendation.
Management deposited $4,613 into the reserve for replacements fund on September 18, 2024. No
further action is required.