Finding Text
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for the Elderly (Section 202 Capital Advance) Assistance Listing Number: 14.157 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Other Matters Criteria or specific requirement: The Organization is required to receive HUD Approval prior to using funds in the replacement reserve fund. Condition: During our testing, we noted the Organization did not receive HUD Approval prior to withdrawal of replacement reserve funds for a capital expenditure. Although email approval was provided for the original bid, the required HUD Approval form was not submitted to HUD. Questioned costs: $18,940 Context: During our testing, it was noted that the Organization did not receive proper HUD approval for a replacement reserve withdrawal. Cause: The Organization was unaware that additional approval was needed prior to withdrawing funds. Effect: The project withdrew funds without proper HUD approval. Repeat Finding: Not a repeated finding. Recommendation: We recommend the Organization submit the request for HUD approval immediately. Views of responsible officials: There is no disagreement with the audit finding. The organization has submitted the request for approval in March 2023.