Finding 571844 (2024-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-07-23

Audit: 362869

Organization: White River Housing Association (WA)

Auditor: Loveridge Hunt & CO PLLC

AI Summary

Answer: Management failed to get HUD approval for all reserve withdrawals.
Trend: The reserve account is underfunded by a total of $28,277, with $18,277 of that being unapproved withdrawals this year.
List: Follow up by ensuring all future withdrawals have HUD approval and address the underfunding issue.

Finding Text

Based on the review replacement reserve documentation, management did not obtain HUD approval as part of the reserve withdrawal process for all reserve withdrawals. The reserve is underfunded, current year withdrawal that was not approved totals $18,277. The total underfunding of the reserve account equals $28,277.

Corrective Action Plan

Management will restore funds to replacement reserve account when project funds become available. Management will review reserve withdrawals prior of release of funds from the serve account to verify the release is approved by the HUD account executive and the release is not a duplicate. The approval will be reviewed by the person initiating the request and verified by the project bookkeeper.

Other Findings in this Audit

1148286 2024-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$2.77M