Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing
Section 202 Project Rental Assistance Contract
Assistance Listing #: 14.157
Type of Finding:
• Other Matter and Significant Deficiency in Internal Control over Compliance
Condition: The Organization had surplus cash at September 30, 2023 of $39,374. This surplus cash was not deposited into the residual receipts reserve account within 90 days from September 30, 2023. The deposit was made on July 31, 2024.
Criteria or Specific Requirement: The HUD regulatory agreement requires any surplus cash to be deposited into the residual receipts account within 90 days of year end.
Questioned Costs: None
Cause: Management oversight.
Effect: The Organization is not in compliance with the HUD regulatory agreement.
Repeat Finding: No
Recommendation: We recommend that management ensure any surplus cash is deposited within 90 days of year end.
Views of Responsible Officials and Planned Corrective Actions: We agree and will ensure future surplus cash is deposited within the required timeline.