FAC Explorer

Finding 8359 (2023-002)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-01-12
Audit: 11175
Organization: Kceoc Housing Corporation Dba Mixon Manor (KY)
Auditor: Miller Mayer Sullivan and Stevens LLP

AI Summary

  • Issue: An unapproved withdrawal of $2,258 from the reserve for replacements occurred during the year.
  • Requirement: All withdrawals must receive written approval from HUD prior to payment.
  • Follow-up: Ensure future withdrawals are approved by HUD before processing to maintain compliance.

Finding Text

Finding 2023-002 During the year ended September 30, 2023, the reserve for replacements had one unapproved withdrawal of $2,258. 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

Recommendation. We recommend HUD approval for all reserve for replacements withdrawals before payments are made. Management Response. We will obtain HUD approval for all reserve withdrawals moving forward.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $57,522