Finding Text
Assistance listing, title, and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 1999
Auditor non-compliance code: A – Unauthorized withdrawal from Replacement Reserve
Universe population size: The universe population size is not applicable to the finding
Sample size information: The sample size is not applicable to the finding
Non-compliance information: See statement of condition #2023-001 for non-compliance information.
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $689
Statement of condition #2023-001: During the year ended June 30, 2023, an unauthorized withdrawal in the amount of $689 was made from the reserve for replacements account.
Criteria: Section 5(a) of the Regulatory Agreement (form HUD-92466) requires that disbursements from the reserve for replacements account be made only after receiving consent in writing from HUD.
Effect or potential effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2023, the reserve for replacements account is underfunded by $689.
Cause: Management inadvertently withdrew $6,984 from the reserve for replacements account while HUD had only approved a withdrawal in the amount of $6,295, resulting in an unauthorized withdrawal in the amount of $689 from the reserve for replacements.
Recommendation: The Corporation should transfer funds from the operating cash account in order to reimburse the reserve for replacements account for the unauthorized withdrawal.
Reporting views of responsible officials: Management concurs with the finding and recommendation. On July 28, 2023, the Corporation transferred $689 from the operating cash account to reimburse the reserve for replacements account for the unauthorized withdrawal.