Finding Text
Statement of Condition: The Organization did not make its June 30, 2023 required surplus cash deposit to its residual receipts account within 90 days following year-end.
Criteria: HUD regulations require that the required deposit to the residual receipts account (if any surplus cash at year-end), be made within 90 days following year-end.
Effect: Noncompliance with HUD regulations.
Cause: Unknown.
Context: During testing, it was determined that the required deposit was made in December 2023.
Recommendation: Management should ensure that the surplus cash calculation and if needed, the required deposit, is done within 90 days following year-end.
Management’s Response and Corrective Action Plan: We agree with the finding. We will put procedures in place to have the calculation and if needed, the required deposit, done within 90 days following year-end.