Finding 614029 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-10-17
Audit: 35200
Organization: Presidential Place, Inc. (MA)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: $42,636 was incorrectly withdrawn from the replacement reserve account for a different project without HUD approval.
  • Impacted Requirements: Withdrawals from the replacement reserve must be approved by HUD and used for the specific project.
  • Recommended Follow-Up: Management should ensure reimbursement from the other entity and restore the funds to the replacement reserve account.

Finding Text

Section III - Finding and Questioned Costs - Major Federal Program Audit Department of Housing and Urban Development Finding No. 2022-001; Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 Criteria Any withdrawal from the replacement reserve account requires HUD approval and should be for costs of the Project. Condition During the year ended June 30, 2022, management withdrew $42,636 from the replacement reserve account for costs incurred by a different project. Cause The amount was withdrawn from the replacement reserve account of the wrong Project in error. Effect or Potential Effect The withdrawal of $42,636 is an unauthorized withdrawal from the replacement reserve account. Questioned Costs N/A Context The error was self-identified by management. Identification as a Repeat Finding Not a repeat finding. Recommendation Management should immediately have the Project reimbursed by the other entity for the $42,636 and deposit the amount back into the replacement reserve. Auditor Noncompliance Code: A - Unauthorized withdrawals from replacement reserve account. Finding Resolution Status: Resolved.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 37586 2022-001
    Significant Deficiency
  • 37587 2022-001
    Significant Deficiency
  • 37588 2022-001
    Significant Deficiency
  • 614028 2022-001
    Significant Deficiency
  • 614030 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3,423