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, 2023 to June 30, 2024
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 calculate and remit the surplus cash deposit that would have been due by August 31, 2024.
Questioned costs: None
Context: During our testing we noted that there had been no deposits calculated at year end or made into the residual receipts account for the 2024 year.
Cause: 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.