Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 811 Capital Advance Assistance Listing Number: 14.181 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Project is required to maintain a residual receipts account and deposit surplus cash. Condition: The Project did not have a separate account for residual receipts and had surplus cash during the year. Questioned costs: $35,636 Context: During our testing, it was noted that the Project did not have a residual receipts account set up. Surplus cash of $35,636 was not deposited into a separate account. Cause: Management oversight. Effect: The Project was not incompliance with the regulatory agreement. Recommendation: We recommend the Project set a separate account for residual receipts and deposit surplus cash into this account within 60 days of year-end. Views of responsible officials: There is no disagreement with the audit finding.