Finding Text
(2024-002) Residual Receipts
Condition - The surplus cash for the year ended December 31, 2022 in the amount of $11,218 was not deposited into the residual receipts account during the years ended December 31, 2023 and 2024.
Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14,157 - Supportive Housing for the Elderly.
Effect - The Company is not in compliance with the above HUD regulations.
Cause - Surplus cash was not deposited into the residual receipts account.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding - This is a repeat of finding 2023-002 from the prior year.
Recommendation - We recommend that the surplus cash in the amount of $11,218 be deposited in to the residual receipts account as soon as possible.
Management’s Reply - Finding 2024-002
(a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken.
(b) Action taken: Management will take action to deposit the underfunded amount of $11,218 into the residual account in February 2025.