Finding 1102553 (2024-002)

Finding 2024-002 Condition: The Project did not submit current year surplus cash within HUD required time frame of 90 days after year end. Criteria or specific requirement: Per HUD requirements, current year calculated Surplus Cash amount is required to be deposited into the Residual Receipts account within 90 days of year end. Effect: Residual Receipts account was not funded in the prescribed HUD required timeframe Cause: Employee Turnover Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends performing training regarding HUD requirements surrounding Residual Reciepts Provisions and introduce policies and procedures to calculate Surplus Cash at year end and deposit it timely. Views of responsible officials and planned corrective actions: Management has made great efforts to adopt policies regarding accounting functions over the year and will continue to provide training to management and administration and adopt and implement policies over year end calculation and deposit of Surplus Cash.