Finding 1076309 (2023-002)

2023-002 Federal agency: Department of Housing and Urban Development Federal program: Section 811 - Supportive Housing for Persons with Disabilities CFDA Number: 14.181 Type of Finding: • Material Weakness in Internal Control over Compliance • Compliance – Material Criteria or Specific Requirement: The HUD regulatory agreement requires that surplus cash should be deposited into a residual receipts account within 60 days of year end. Condition: At December 31, 2023 the Project had surplus cash totaling $44,704 and the amount was not deposited into a residual receipts account. Questioned Costs. $44,704 Context: A computation of surplus cash was performed as of December 31, 2023 resulting in surplus cash of $44,704. Cause: Controls were not followed to ensure that surplus cash amounts were computed and transferred to a residual receipts account in a timely fashion. Effect: A timely deposit was not made to a residual receipts account. Repeat Finding: Yes, this is a repeat finding from 2020. Recommendation: A deposit of $44,704 should be made to the residual receipts account. Views of Responsible Officials and Corrective Action: Management intends to make a deposit of $44,704 to the residual receipts account within the next 30 days.