Finding 1101703 (2024-002)

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 ACT failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements. Questioned costs: None Context: During our testing we noted that there had been no deposits made into the residual receipts account. Cause: ACT 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 design and implement controls to prevent noncompliance with HUD requirements. Views of responsible officials: There is no disagreement with the audit finding.