Reimburse the project’s operating account $50,400 from the reserve for replacement account.

Maintain separate books of account and submit audited financial statements solely for the project.

Develop and implement policies and procedures to ensure that the certified public accountant submits audited financial statements by the required HUD deadline.

Work with the local multifamily office to make any outstanding mortgage payments or devise a plan to bring the property current through the use of available funds.

Review the audited financial statements and determine the amount of outstanding mortgage payments due.

Submit any outstanding audited financial statements.

Develop and implement detailed policies and procedures for procurement, travel, and the use of its credit cards. These controls should comply with HUD regulations regarding procurement and other disbursement documentation requirements.

Obtain training on the eligible use of project funds.

Provide support for the $12,355 in project funds spent to pay individuals who were not on the payroll and for services provided for project operations. For any portion of this amount that is not supported, the owner should repay the project operating account using nonproject funds.

Repay the project’s operating account from nonproject funds for the $142,805 spent on ineligible expenses.