Finding 8356 (2023-002)

Requirement

Questioned Costs

Year

2023

Accepted

2024-01-12

Audit: 11174

Organization: Kceoc Housing Corporation II Dba Kceoc Senior Housing (KY)

Auditor: Miller Mayer Sullivan and Stevens LLP

AI Summary

Issue: An unapproved withdrawal of $2,128 from the reserve for replacements occurred during the year.
Requirement: All withdrawals must receive written approval from HUD.
Follow-up: Ensure future withdrawals are approved by HUD before any payments are processed.

Finding Text

During the year ended September 30, 2023, the reserve for replacements had one unapproved withdrawal of $2,128. The withdrawal was subsequently approved by HUD in December 2023. Criteria. Reserve for replacements withdrawals are subject to written HUD approval. Cause. Unknown. Effect. The borrower is not in compliance with the terms of the HUD Regulatory Agreement. Recommendation. We recommend HUD approval for all reserve for replacements withdrawals before payments are made.

Corrective Action Plan

Management Response. We will obtain HUD approval for all reserve withdrawals moving forward.

Other Findings in this Audit

8355 2023-001

-
8357 2023-003

-
584797 2023-001

-
584798 2023-002

-
584799 2023-003

-

Programs in Audit

ALN	Program Name	Expenditures
14.157	Supportive Housing for the Elderly	$46,081