Finding Text
Agency: U.S. Department of Housing and Urban Development (HUD)
Federal Assistance Listing Number: 14.157, Supportive Housing for the Elderly
Criteria: The Project is required to have processes and controls in place to ensure withdrawals from
the reserve for replacement are properly approved by HUD as well as accurately recorded and
tracked within the general ledger.
Statement of condition: The Project received the necessary approval from HUD for a withdrawal
from the reserve for replacement however the withdrawal was duplicated and taken out of the
reserve for replacement twice.
Questioned Costs: Questioned costs totaled $4,906.
Context: The project withdrew $4,906 from the reserve for replacement in October of 2024. An
additional withdrawal of $4,906 for the same repair for the project was taken out in December 2024.
Effect: The Project duplicated a withdrawal from the reserve for replacement account.
Cause: Controls in place did not timely detect that the HUD approved withdrawal from the reserve
for replacement had been duplicated and take out twice.
Recommendation: We recommend management review their processes and controls surrounding
withdrawals from the reserve for replacement to ensure they are approved by HUD and recorded
correctly within the general ledger.