Finding 518992 (2024-001)

S3800-010 Finding reference number 2024-001 S3800-011 Title and AL number of federal program Section 202 HUD Capital Advance #14.157 S3800-015 Type of finding Federal Award Finding and Internal control over Compliance S3800-016 Finding resolution status Complete S3800-017 Information on universe population not applicable S3800-018 Sample information not applicable S3800-019 Identification of repeat finding and finding reference number not applicable S3800-020 Criteria The Regulatory Agreement between HUD and the owner stipulates that HUD approval is required for replacement reserve withdrawals. S3800-030 Statement of condition The Organization made a withdrawal of $14,068 that was not approved by HUD from the replacement reserve account. S3800-032 Cause Management did not request approval. S3800-033 Effect or potential effect Cash may be unavailable to meet reasonable and necessary capital obligations of the projects. S3800-035 Auditor non-compliance code A - Unauthorized withdrawals from replacement reserve account S3800-040 Questioned costs $0 S3800-037 Property associated with the finding 062EE033 S3800-038 Questioned costs $0 S3800-045 Reporting views of responsible officials Management agrees S3800-050 Context There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. S3800-080 Recommendation Management should monitor internal controls over compliance and receive HUD approval before distribution from the replacement reserve account are authorized. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management concurs. S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date August 23, 2024 S3800-150 Response Management will either get HUD approval or refund the distribution made.