Finding Text
Finding No. 2023-1
Statement of Condition
Residual receipts were not properly deposited into an account in accordance with HUD requirements.
Criteria
Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year.
Questioned Costs
$586,006
Effect or potential effect
The Company is in non-compliance with specific requirements of a major federal program.
Cause
Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account.
Recommendation
We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements.
Reporting views of responsible officials
Auditee agrees with the auditor.
Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.