Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Criteria or Specific Requirement: All disbursements from the reserve must be approved by HUD and made for the approved purpose (24 CFR section 891.405). Condition: Upon performing testing over replacement reserve disbursements, we noted that one invoice was included in two different disbursement requests to HUD. Questioned costs: $1,436 Context: One of the invoice tested of $1,436 was included in two different disbursement requests to HUD. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over replacement reserve disbursement. Effect: Disbursements made out of the replacement reserve included an invoice of $1,436 that was already included in previous disbursement request and was reimbursed twice. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of replacement reserve disbursement requests. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Property management is increasing staff to properly comply with all regulations. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: Immediate going forward.