Finding Text
Federal Award Findings and Questioned Costs
Finding No. 2024-1; Section 202, Assistance Listing 14.157 – Significant Deficiency
Name of Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name and Assistance Listing Number: Supportive Housing for the Elderly
Section 202 Direct Loan and Project Rental Assistance Contract; 14.157
Federal Award Identification Number and Year: 012-EE287 2024
Condition
During the year ended June 30, 2024, management did not make the required residual receipts
reserve deposit in the amount of $93,641 within 90 days of year end, as required by HUD. The
residual receipts amount as of February 26, 2025, the Organization has not yet deposited the
amount into the Residual Receipts reserve.
Criteria
Residual receipts reserve deposits should be made within 90 days of year end.
Cause
Controls are not in place to ensure that required residual receipts reserve deposits are made timely.
Effect or Potential Effect
The Organization is not in compliance with the requirements of the regulatory agreement.
Recommendation
Management should establish internal controls and procedures to ensure that required residual
receipts reserve deposits are made timely.
Auditor's Noncompliance Code: B - Failure to make required residual receipts deposits
Reporting Views of Responsible Officials
The $93,461 of residual receipts noted in the 2023 audit and cited as a finding in the 2024 report
was deposited into the residual receipt account on January 10, 2025. Our new Controller has
established procedures to ensure that that the proceeds stemming from the retroactive budgetbased
rent increase are used for their intended purpose prior to the end of the fiscal year that they
are received.
Status
In process