Finding Text
FEDERAL AWARD FINDINGS: 2022-001 Reserve for Replacements Withdrawal CONDITION: Disbursements from HUD approved withdrawal were not made for the approved purposes. CRITERIA: Disbursements from Reserve for Replacements must be for only HUD approved purposes. EFFECT: The Project is not in compliance with award requirements. CONTEXT: Audit procedures that tested disbursements from the Reserve for Replacements revealed disbursements totaling $11,049.90 were not made for HUD approved purposes. CAUSE: A vendor that was to be used for the approved disbursements had to close its operations and, accordingly, was unable to service the Project with window replacements. A second vendor that was to be used for the approved disbursements rescinded its job offer to complete concrete repairs for the Project. As a result, the Project used the funds for other purposes and had not returned the funds back to the Reserve for Replacements as of March 31, 2022.