Finding 576522 (2023-001)

Finding # 2023-001 Federal Grantor: U.S. Department of Housing and Urban Development CFDA# / Program : 14.181 Supportive Housing for Persons with Disabilities Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Information on Universe Population Size: There were two replacement reserve disbursement during the year. Sample size information: Tests were performed on both replacement reserve releases. Criteria: Releases from the replacement reserve must be approved by HUD prior to the release. Statement of Condition: Management released $6,000 from the replacement reserve without HUD approval. Cause: Funds were needed for temporary cash flow shortage and the funds were returned on 7/18/2023. Effect or Potential Effect: The replacement reserve is underfunded by $6,000. Auditor Non-Compliance Code: A - Unauthorized withdrawals from replacement reserve account Questioned Costs: $6,000 Reporting Views of Responsible Officials: Funds were needed for temporary cash flow shortage and the funds were returned on 7/18/2023. Context: N/A Recommendations: Management should implement controls to prevent releases from the restricted reserves without proper approval. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Funds were needed for temporary cash flow shortage and the funds were returned on 7/18/2023. Response Indicator Agree Completion Date 7/18/2023 Response Funds were needed for temporary cash flow shortage and the funds were returned on 7/18/2023.