Finding Text
Finding Type:
Immaterial noncompliance with major program requirements
Title and Assistance Listing Number of Federal Program - 14.157 Supportive Housing for the Elderly (Section 202) - Capital Advance
Finding Resolution Status - Resolved
Information on Universe and Population Size - All replacement reserve
withdrawals were audited.
Sample Size Information - All replacement reserve withdrawals were
audited.
Identification of Repeat Finding and Finding Reference Number - n/a
Criteria - The Corporation should have HUD authorization for all withdrawals from the replacement reserve account as required by the regulatory agreement.
Statement of Condition - Withdrawals totaling $29,969 were made from the replacement reserve without HUD authorization due to a duplication of withdrawals.
Cause - The Corporation requested a withdraw in the amount of $29,969 twice from the replacement reserve.
Effect or Potential Effect - The unauthorized withdrawals caused the replacement reserve account to be underfunded at year end by $29,969.
Auditor Noncompliance Code - A - Unauthorized withdrawals from replacement reserve account
Reporting Views of Responsible Officials - Management agrees with the underfunded amount at September 30, 2024.
Context - The replacement reserve withdrawal was erroneously withdrawn twice. The Corporation identified the error prior to audit and corrected the underfunding.
Recommendation - The Corporation should make a deposit to correct underfunding of replacement reserve account in the amount $29,969.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should obtain approval from HUD prior to withdrawing funds from the replacement reserve.
Response Indicator - Agree
Completion Date - October 17, 2024