Finding Text
2022-2 HUD 9250 Instructions not followed Condition: Reserve for replacement funds were not returned to the account as required by HUD. Criteria: $21,073 was approved to be utilized by HUD from the replacement reserve account for operations. HUD also required that the $21,073 be returned to the replacement reserve account, following approval of the 2022 contract and budget. The funds were not returned to the replacement reserve account as of 12/31/2022, although both the budget and contract had been approved, April 12, 2022. Cause: The cause is undeterminable. Effect: The Project did not comply with HUD 9250 instructions. Recommendation: I recommend management comply with all HUD instructions, rules, and regulations.