Finding Text
Finding Reference Number: 2023-003
Title and Assistance Number of Federal Program: 14.157 Supportive Housing
for the Elderly
Type of Finding: Federal Program Finding (FP)
Finding Resolution Status: IN PROCESS
Information on Universe Population Size: N/A - Not detected as a result of sampling procedures and testing.
Sample Size Information: N/A - Not detected as a result of sampling procedures and testing.
Identification of Repeat Finding and Finding Reference Number: 2022-003
Criteria:
The HUD regulatory agreement requires pre-approval for all withdrawals from the residual receipts account.
Statement of Condition:
Management made an unauthorized withdrawal of $4,400 from the residual receipts account during the fiscal year ended June 30, 2022; the funds have not been returned to the residual receipts account.
Cause:
Management mistakenly withdrew funds from the residual receipts account during the year ended June 30, 2022 but did not make a deposit to replace those funds during the fiscal year ended June 30, 2023.
Effect or Potential Effect:
The residual receipts account remains underfunded by $4,400.
Auditor Non-Compliance Code: C – Unauthorized withdrawals from residual receipts account
Questioned Costs: $4,400
Details – Questioned Costs by Property
FHA/Contract Number: 127-EE017 S3800-038 Questioned Costs: $4,400
Reporting Views of Responsible Officials:
Senior management has discussed the unauthorized transfer with the Project Accountant and will transfer $4,400 from the operating account to the residual receipts reserve.
Context:
Management made an unauthorized withdrawal of $4,400 from the residual receipts account during the fiscal year ended June 30, 2022; the funds have not been returned to the residual receipts account leaving the account underfunded by $4,400.
Recommendation:
Management should deposit $4,400 into the residual receipts account to refund the unapproved withdrawal.
Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations:
Management agrees with the finding, and has taken corrective actions which include communication with the Project Accountant and Regional Manager and will transfer $4,400 from the operating account to the residual receipts account.
Response Indicator: Agree (A) Completion Date: March 29, 2024
Response:
Management agrees with the finding and plans to take corrective actions which include communication with the Project Accountant and Regional Manager about withdrawals, and will transfer $4,400 from the operating account to the residual receipts account.