Audit 36696

Criteria: According to the Regulatory Agreement with HUD, within 60 days after the end of each fiscal year, any residual receipts realized from the operation of the mortgaged property shall be deposited in a separate residual receipts account. Residual receipts shall be under the control of HUD and shall be disbursed only at the discretion of HUD for such purpose as it may determine to be necessary or appropriate. Condition: Hibernian House did not deposit the residual receipts from fiscal year 2022 until September 9, 2022 (71 days after year-end). Context: N/A Questioned Costs: None Cause: Management of Hibernian House overlooked the 60-day deadline from the Regulatory Agreement. Once notified of the deadline, management immediately calculated the residual receipts and made the deposit into the separate residual receipts account. Effect: Hibernian House is not in compliance with the 60-day deadline to deposit residual receipts into the separate residual receipts account from the Regulatory Agreement. Auditor?s Recommendation: Management should create a reminder to calculate the residual receipts for each fiscal year and deposit this amount within 60 days after year-end. Management?s Response: We concur with the finding that the deposit to the residual receipts account was not made within 60 days of the fiscal year end. Management of Monarch Properties, the management agency for Hibernian House, have modified procedures so that electronic reminders will alert members of the accounting team to ensure that the surplus cash computation is completed and necessary transfers to residual receipts are made timely. Additionally, Catholic Charities will remind Monarch Properties of this requirement within 10 days after each year end to ensure the deposit to the residual receipts account is made within 60 days of the fiscal year end.

Criteria: According to the Regulatory Agreement with HUD, within 60 days after the end of each fiscal year, any residual receipts realized from the operation of the mortgaged property shall be deposited in a separate residual receipts account. Residual receipts shall be under the control of HUD and shall be disbursed only at the discretion of HUD for such purpose as it may determine to be necessary or appropriate. Condition: Hibernian House did not deposit the residual receipts from fiscal year 2022 until September 9, 2022 (71 days after year-end). Context: N/A Questioned Costs: None Cause: Management of Hibernian House overlooked the 60-day deadline from the Regulatory Agreement. Once notified of the deadline, management immediately calculated the residual receipts and made the deposit into the separate residual receipts account. Effect: Hibernian House is not in compliance with the 60-day deadline to deposit residual receipts into the separate residual receipts account from the Regulatory Agreement. Auditor?s Recommendation: Management should create a reminder to calculate the residual receipts for each fiscal year and deposit this amount within 60 days after year-end. Management?s Response: We concur with the finding that the deposit to the residual receipts account was not made within 60 days of the fiscal year end. Management of Monarch Properties, the management agency for Hibernian House, have modified procedures so that electronic reminders will alert members of the accounting team to ensure that the surplus cash computation is completed and necessary transfers to residual receipts are made timely. Additionally, Catholic Charities will remind Monarch Properties of this requirement within 10 days after each year end to ensure the deposit to the residual receipts account is made within 60 days of the fiscal year end.