Finding 529 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-23
Audit: 1051

AI Summary

  • Core Issue: A $2,500 withdrawal from the Residual Receipts account was made without HUD approval, violating guidelines.
  • Impacted Requirements: Compliance with HUD regulations regarding Residual Receipts withdrawals is essential.
  • Recommended Follow-Up: Implement procedures to ensure all withdrawals are authorized by HUD, with a completion target of 09/30/2023.

Finding Text

S3800-010 Finding Reference Number 2023-001 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811 Capital Advance and Rental Assistance), 14.181 S3800-015 Type of Finding Financial Statement Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size N/A S3800-018 Sample size Information N/A S3800-019 Identification of Repeat Finding and Reference Number No S3800-020 Criteria Organization must comply with HUD guidelines regarding Residual Receipts withdrawals. S3800-030 Statement of Condition Withdrawal of $2,500 was made from Residual Receipts account without HUD approval. S3800-032 Cause Employee oversight. S3800-033 Effect or Potential Effect Organization was not in compliance with HUD guidelines for residual receipts withdrawals. S3800-035 Auditor Non-Compliance Code C – Unauthorized withdrawals from residual receipts account S3800-040 Questioned Costs $2,500 S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and is in the process of replacing withdrawn funds. S3800-037 FHA/Contract Number 127HD034 S3800-038 Questioned Costs $2,500 S3800-080 Recommendation Management should have procedures in place to ensure only HUD authorized withdrawals are made from the residual receipts account. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Manager is in the process of correcting the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 09/30/2023 S3800-150 Response Management agrees with the finding and is in the process of replenishing the funds. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson

Corrective Action Plan

Management agrees with the finding and is in the process of repaying the funds.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 576971 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.18M