Finding Text
Questioned Costs: $3,300 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-003. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2019. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve is underfunded by $3,300 at June 30, 2022. Cause: An invoice was submitted by management, but was paid by the nonprofit sponsor?s foundation on the Company?s behalf. Recommendation: Due to cash flow constraints, the Company was not able to repay the nonprofit sponsor?s foundation for the submitted invoice paid on the Company?s behalf. The Company will repay the nonprofit sponsor?s foundation when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the nonprofit sponsor?s foundation when cash is available.