Finding 574782 (2025-002)

-
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2025-08-27
Audit: 365069
Organization: Houston Heights Towers (TX)

AI Summary

  • Core Issue: A duplicate invoice of $1,707 was used in a withdrawal from the Reserve for Replacement Account.
  • Impacted Requirements: All withdrawals must be supported by unique invoices as per the regulatory agreement.
  • Recommended Follow-Up: Implement controls to prevent duplicate expenditures in future withdrawals from the Reserve for Replacement Account.

Finding Text

Schedule reference number 2025-002 - Title and AL Number of Federal Program: Section 8 Housing Assistance (AL 14.195) - Type of finding: Federal Award - Resolution Status: Resolved. - Population size: N/A - Sample size: N/A - Repeat finding: No. - Criteria: The regulatory agreement stipulates that all withdrawals from the Reserve for Replacement Account be supported by invoices and payments as proof of amounts expended. - Statement of Condition: An invoice of $1,707 was duplicated while calculating the funds to be withdrawn from the Reserve for Replacement account . - Cause: Management oversight. - Effect or Potential Effect: There is an excess withdrawal of $1,707. - Auditor Non-Compliance Code: A. - Questioned costs: N/A. - Reporting views of responsible officials: Management inadvertently duplicated a previously included invoice for expenditure of $1,707 while drawing funds from the Reserve for Replacement Account. - Contract Number: 114-44098. - Context: The duplication of the expenditure in the withdrawal request was noticed at the time of performing the audit. - Recommendation: Management should have controls in place to make sure no expenditure is duplicated for withdrawals from the Reserve for Replacement Account. - Auditors' summary of auditee's comment: They are in agreement. Management asserts that it was a one-time error and they will put controls in place to ensure it does not happen again in the future. - Proposed completion date: Completed. - Response: Management agrees with the finding and has refunded $1,707 to the Reserve for Replacement Account on August 12, 2025.

Corrective Action Plan

Audit Finding 2025-002: The regulatory agreement stipulates that all withdrawals from the Reserve for Replacement Account be supported by invoices and payments as proof of amounts expended. An invoice of $1,707 was duplicated while calculating the funds to be withdrawn from the Reserve for Replacement account . Response: Management agrees with the finding and has refunded $1,707 to the Reserve for Replacement Account on August 12, 2025.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $6.50M
14.218 Community Development Block Grants/entitlement Grants $3.50M
14.195 Project-Based Rental Assistance (pbra) $421,065