Finding Text
Federal Agency Dept of Housing and Urban Development
Federal Program Name Supportive Housing for Persons with Disabilities
Assistance Listing Number 14.181
Type of Finding: Significant Deficiency in Internal Control
Criteria: The project is required to obtain HUD approval prior to withdrawing funds from the
Replacement Reserve Account.
Cause Staff involved in internal controls over this compliance requirement lacked sufficient
training.
Effect The Project is out of compliance with HUD requirements.
Questioned costs: 0.00
Context: The Project withdrew funds without obtaining a signed 9250 from HUD
Repeat Finding: No
Recommendation: Document and follow a formal process that follows HUDs guidelines for
withdrawal of Replacement Reserve Funds.
Views of Responsible Officials: Agree that a formal process and education of HUD requirements
regarding Replacement Reserve withdrawals would help the project be successful in maintaining
compliance.
Corrective action plan - management response: Contact HUD regarding the submission of the 9250,
receive a signed copy prior to withdrawing any more funds.