Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations
Finding 2024-001: An unauthorized withdrawal of $2,000 was transferred from the reserve for replacement to the operating cash account on November 25, 2024.
Comments on the Finding and Each Recommendation
The funds were withdrawn from the account due to the delay in the project receiving the HAP payment. The amount was deposited back into the reserve for replacement account on December 2, 2024. All other withdrawals from the reserve for replacement during the year were properly approved. The project had a rent increase effective September 1, 2024 of which they are still waiting to receive rents owed from HUD. Management has received email approval for borrowing money from the reserve in 2025.
Actions Taken on the Finding
Management will transfer from the reserve for replacement account into operating cash account only when they receive proper approval from HUD.
CAP prepared by:
Trisha Jester
Director of Multifamily Housing
Arbors Management, Inc.
724-733-5733
Anticipated completion date:
March 31, 2025