Finding Text
Finding Type Immaterial noncompliance with major program requirements
Title and Assistance Listing Number of Federal Program 14.157
Finding Resolution Status Resolved
Information on Universe and Population Size All withdrawals from the replacement reserve account totaling $271,810
Sample Size Information n/a all withdrawals were selected for testing
Identification of Repeat Finding and Finding Reference Number n/a not a repeat finding
Criteria The Corporation should have HUD authorization for all withdrawals from the replacement reserve account as required by the regulatory agreement.
Statement of Condition Withdrawals totaling $12,275 were made from the replacement reserve without HUD authorization.
Cause The Corporation withdrew $12,275 from the replacement reserve account without obtaining prior approval from HUD.
Effect or Potential Effect The unauthorized withdrawals caused the replacement reserve account to be underfunded at year end by $12,275.
Auditor Noncompliance Code A Unauthorized withdrawals from replacement reserve account
Reporting Views of Responsible Officials Management is in agreement with the finding as written
Context The Corporation withdrew $12,275 from the replacement reserve account without obtaining prior approval from HUD.
Recommendation The Corporation needs to make a deposit to correct underfunding of replacement reserve account in the amount $12,275.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management should obtain approval from HUD prior to withdrawing funds from the replacement reserve.
Response Indicator None
Completion Date August 4, 2023
Response Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the underfunded amount of $12,275 to the replacement reserve account on August 4, 2023.