Finding Text
Finding reference number: #2022-002
CFDA Title and a number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing Number 14.181, 1998 (Project identification number 085-HD016)
Auditor non-compliance code: A - Unauthorized withdrawal from replacement reserve
Finding resolution status: Cleared
Universe population size: 5 invoices included in withdrawals from the reserve for replacements.
Sample size information: 2 invoices
Noncompliance information: See statement of condition #2022-002 for noncompliance information.
Statically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass Through entity: N/A
Questioned costs: $288
Statement of condition #2022-002: The Corporation withdrew funds from the reserve for replacement in excess of actual costs incurred.
Criteria: Pursuant to HUD regulations, funds withdrawn from the reserve for replacements shall be used only for the work indicated on the request.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $288.
Cause: The Property received advanced approval from HUD to withdrawal funds from the reserve for replacements based on quotes received from a vendor. When the final invoice was received, the total cost was $288 less than the amount withdrawn from the reserve for replacements.
Recommendation: Management should return $288 to the reserve for replacements.
Completion date: July 28, 2023
Management Response: Agree. Management returned $288 to the reserve for replacements on July 28, 2023.