Finding Text
Findings reference number: 2024-002 - Title and AL Number of Federal Program: Supportive Housing for the Elderly - Section 202 Capital Advance (AL 14.157) - Type of finding: Federal Award (Compliance) - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: No - Criteria: Funds should not be withdrawn from the reserve for replacement without HUD's written authorization. - Condition: Review of the reserve for replacement account showed that $8,468 had been withdrawn in 2024 without HUD's approval. - Cause: The Project had a shortfall of operational cash and used some funds from the reserve for replacement account to pay for operating expenses. - Effect: The Project has to redeposit such funds to the reserve for replacement or obtain authorization for the withdrawal. - Noncompliance code: A. Unauthorized withdrawal - Questioned costs: N/A. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114-EE093 - Context: The funds were withdrawn because of a shortfall of operating cash. - Recommendation: Management should not withdraw funds from the reserve for replacement without HUD authorization. - Auditee's comments: Auditee agrees with the finding. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: 12/31/2025