Finding Text
Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of capital advance and PRAC agreement with HUD prohibit loans from project assets without HUD approval. Condition During the year ended December 31, 2024, management inadvertently deposited $5,073 from project operations into another entity's bank account. Cause An administrative oversight in the payments of replacement reserve deposits 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 $5,227 Context The issue is linked to lack of adequate management oversight in making the replacement reserve deposits and the need for corrective action. Identification as a Repeat Finding Not a Repeat finding Recommendations 2024-2-a The project's operating cash account should be reimbursed for this amount. 2024-2-b The management company should implement procedures to ensure that cash is not inadvertently sent to another company's bank account. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C will repay the amount to the property