Finding Text
Department of Housing and Urban Development Finding No. 2022-001; Section 811, CFDA 14.181 Statement of Condition During the year ended June 30, 2022, management withdrew $120,406 from the replacement reserve without HUD approval. Criteria Any withdrawal from the replacement reserve required HUD approval. Questioned Costs None Effect The withdrawal of $120,406 is an unauthorized withdrawal from the replacement reserve. Cause Money was inappropriately transferred from replacement reserve account. Recommendation Management has refunded the money, management should put a system in place to avoid such withdrawals in the future. Auditor Noncompliance Code: H - unauthorized distribution of project assets Finding resolution status: Cleared. View of responsible officials and planned corrective actions Management has refunded the money and have implemented protocols to avoid withdraws without prior HUD approval.