Finding Text
Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons
with Disabilities (Section 811).
Criteria or specific requirement: In accordance with the HUD regulatory agreement, the replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account.
Condition: The Organization failed to hold funds in an interest-bearing account. No interest was earned during the year.
Cause: There was an oversight by management when opening a new bank account for these funds.
Recommendation: We recommend that the funds be transferred into an interest-bearing account.
Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.