Finding 1078135 (2023-002)

Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for the Elderly (Section 202 Capital Advance) Assistance Listing Number: 14.155 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Management is required to deposit surplus cash into residual receipts fund within 90 days of year-end. Condition: During our testing, we noted Management did not deposit surplus cash into residual receipts account until April 4, 2023, which is more than 90 days after year-end. Context: During our testing, it was noted that Management did not deposit surplus cash into residual receipts account until more than 90 days after year-end. Cause: The deposit was made via paper check, which was written on March 29, 2023, but not deposited until April 4, 2023. Effect: The deposit was not made within 90 days of year-end, as stipulated in the contract. Repeat Finding: 2022-002 Recommendation: We recommend any surplus cash deposits be made with time for check to travel through proper avenues or use electronic measures to ensure amount is deposited before 90 days after year-end. Views of responsible officials: There is no disagreement with the audit finding