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
Questioned costs: None
Context: During our testing we noted that current year required surplus cash had not yet been deposited through December 20, 2024.
Cause: The untimely deposit is 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.