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 ACT II failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements within the 60 day time frame prescribed by HUD.
Questioned costs: None
Context: During our testing we noted that prior year required surplus cash was not deposited until 10/31/23, outside of the 60 day HUD timeframe.
Cause: ACT II 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 the ACT II design and implement controls to prevent non- compliance with HUD requirements surrounding surplus cash deposits.
Views of responsible officials: There is no disagreement with the audit finding.
Condition: During our testing, we noted that ACT II failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements within the 60 day time frame prescribed by HUD.