Finding Text
Department of Housing and Urban Development Finding 2024-004 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of regulatory agreement prohibit loans from project assets without HUD approval. Condition During the year ended September 30, 2024, cash intended for deposit into the replacement reserve account in the amount of $2,732 was deposited into another entity's bank account. Cause An administrative oversight in the deposit of receipts caused the amount to be deposited into an
incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned costs
$2,732 Context During the year ended September 30, 2024, $2,732 in project funds was incorrectly deposited into another entity's bank account, contrary to the terms of the regulatory agreement. Identification as a Repeat Finding Not a repeat finding Recommendations 2024-4-a The project's replacement reserve account should be reimbursed for this amount. 2024-4-b The management company should implement procedures to ensure that cash intended for the project remain in the custody of the project. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C repaid one deposit on September 30, 2024 and will repay the remaining one-month deposit to the property. These funds will be correctly deposited into the replacement reserve account.