Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Supportive Housing for Persons with Disabilities
Assistance Listing Number: 14.181
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end.
Condition: During our testing, we noted that Brook View Gardens failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements.
Questioned costs: None
Context: During our testing we noted that there had been no deposits made into the residual receipts account.
Cause: Brook View Gardens had a change in personnel in February 2024 in the accounting department and the deposit was missed due to oversight.
Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded.
Repeat Finding: No
Recommendation: We recommend Brook View Gardens design and implement controls to ensure the deposit of surplus cash is made when required. We also recommend the current year surplus cash amount of $10,079 calculated at June 30, 2024 be deposited immediately
Views of responsible officials: There is no disagreement with the audit finding.