Finding Text
Finding No. 2022-002 Statement of Condition: The Corporation made an unauthorized withdrawal from the reserve fund. Criteria: The Corporation is required to receive authorization from HUD prior to withdrawing funds from the replacement reserve fund. Questioned Costs: $35,000 Effect: The Corporation was not in compliance with the regulatory agreement. Cause: The Corporation withdrew cash from the reserve fund to pay for operating expenses due to delays in the PRAC being renewed. Recommendation: The Corporation should reimburse the reserve account when funds are available. Management Response: Management agrees with the finding and will reimburse the reserve account when funds are available.