Finding 1101699 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-03

AI Summary

  • Core Issue: ACT II did not deposit surplus cash into the required account within the 60-day deadline set by HUD.
  • Impacted Requirements: This failure violates HUD's regulations regarding surplus cash management.
  • Recommended Follow-Up: Implement stronger internal controls to ensure timely compliance with HUD deposit requirements.

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.

Categories

HUD Housing Programs Internal Control / Segregation of Duties Cash Management Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 525256 2024-002
    Significant Deficiency
  • 525257 2024-002
    Significant Deficiency
  • 525258 2024-003
    Significant Deficiency
  • 525259 2024-003
    Significant Deficiency
  • 1101698 2024-002
    Significant Deficiency
  • 1101700 2024-003
    Significant Deficiency
  • 1101701 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.11M