Finding Text
Findings reference number: 2023-001 Title and AL Number of Federal Program: Supportive Housing for the Elderly - Section 202 Capital Advance (AL 14.157) Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes Criteria: Funds should not be withdrawn from the reserve for replacement without HUD's authorization. Condition: Review of the reserve for replacement account showed that $6,000 that had been withdrawn in the prior year without HUD's approval had not yet been paid back. Additionally, the Project withdrew $12,799 in 2023 without HUD's approval. This amount was paid back in 2024. Cause: The Project had a shortfall of operational cash and used some funds from the reserve for replacement account to pay for operating expenses. Effect: The Project will have to redeposit such funds to the reserve for replacement or obtain authorization for the withdrawal. Noncompliance code: A. Unauthorized withdrawal Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-EE150 Context: The funds were withdrawn because of a shortfall of operating cash. Recommendation: Management should transfer enough funds to the reserve for replacement account to cover the withdrawal. Auditee's comments: Auditee agrees with the finding and will replenish the money to the reserve for replacement account as soon as possible. Auditors' summary of auditee's comments: They are in agreement. Completion date: 12/31/2024 Response: Management will transfer the $6,000 remaining shortfall from the operations to reserve for replacement account to cover the withdrawal, as soon as the funds become available.