Finding Text
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly, Assistance Listing No. 14.157, 143-EE054-WAH-NP and 2006
Auditor non-compliance code: A – Unauthorized withdrawal from replacement reserve
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $5,980
Statement of condition 2024-001: During the year ended December 31, 2024, the Corporation
withdrew $5,980 from the reserve for replacements without obtaining HUD approval.
Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to obtain HUD
approval for withdrawals from the reserve for replacements.
Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for
replacements is underfunded.
Cause: The bank withdrew the funds from the reserve for replacements account instead of the
operating account due to an error reading the check. Funds were not transferred to correct the error
when found.
Recommendation: Management should make a deposit to the reserve for replacements for $5,980.
Management's response: Management concurs with the finding and recommendation. Management
will make a deposit of $5,980 during the year ended December 31, 2025.