Finding Text
Condition: Withdrawals from the Project's restricted deposit accounts require all withdrawals to have supporting
documentation for purposes described and approved for on HUD Form 9250.
Criteria: The Project's management company is required to ensure supporting documentation is valid and correct.
Cause: The Project's management company inadvertently used the same supporting documentation for two different
withdrawals that took place during the fiscal year. The total withdrawn without proper supporting documentation
is $4,946.
Effect: Ridgebury Apartments, Inc. is out of compliance with the requirements of the Supportive Housing For
Elderly Persons, Regulatory Agreement.
Recommendation: The Project's management should deposit the $4,946 withdrawn without proper supporting
documentation back into the reserve for replacement account and put controls in place to ensure funds withdrawn
go through a proper authorization process, that includes verifying and reviewing all supporting documentation.