Finding Text
Criteria
Residual receipts funds should be made within 90 days of year-end.
Condition
During the year ended June 30, 2024, management did not make the required residual receipts
reserve deposit in the amount of $10,012 within 90 days of year-end, as required by HUD.
Cause
Controls were not in place to ensure that residual receipts funds were timely deposited.
Effect or Potential Effect
The Organization is not in compliance with the requirements of the regulatory agreement and of
the Consolidated Appropriations Act of 2016, governing Residual Receipts for PRAC program.
Questioned Costs
$10,012
Identification as a Repeat Finding
This is not a repeat finding.
Recommendations
Management should establish internal controls and procedures to ensure that excess residual
receipts reserve funds are remitted timely.
Auditor Noncompliance Code:
B - Failure to make required residual receipts deposits.
Views of Responsible Officials
Management agrees with the finding and due to the property being short on funds, management
will work with HUD on funding.
Finding Resolution Status: In process