Finding 1096344 (2023-001)

Finding 2023-001- Residual Receipt Deposits Federal Agency: U. S. Department of Housing and Urban Development Program Name: Section 811 Capital Advance Assistance Listing NO 14.181 ($1,835,000) Questioned Costs None Condition Found The $5,280 of surplus cash at June 30, 2023 was not deposited into the residual receipts account within ninety days. 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 $5,280 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 $5,280 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 Management will fund residual receipts within the required timeframe going forward.