Finding 1096343 (2023-002)

Finding 2023-002- Residual Receipt Deposits Federal Agency U. S. Department of Housing and Urban Development Pass through Entity Not applicable Program Name: Section 811 Capital Advance Program CFDA# and Program Expenditures: 14.181 ($1,616,600) Federal Award Year July1, 2022 to June 30, 2023 Questioned Costs $22,666 Condition Found The $22,666 of surplus cash at June 30, 2023 was not deposited into the residual receipts account within ninety days of the Project’s fiscal year-end. Criteria: According to HUD’s guidelines, a Project must deposit surplus cash due to residual receipts within ninety days after the fiscal period ends (REAC submission due date) Cause Project management did not transfer the surplus cash of $22,666 from the operating account to the residual receipts Effect: The Project held excess cash and did not make the required residual receipts deposits. Recommendation: The Project should make a deposit of $22,666 for the year ended June 30, 2023. Procedures should be improved to ensure that surplus cash is calculated and transferred to the residual receipt account timely. Management’s response Agrees with the recommendation