Finding 1106703 (2024-001)

Finding 2024-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: Lucille Manor Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end. Condition: The required deposit of $7,387 for the year ended June 30, 2023 was made in March 2024, which is after the 60 day deadline. Context: We reviewed the residual receipts deposits during the year. Cause: Lucille Manor Apartments’ surplus cash calculation was not performed timely. Effect: Lucille Manor Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Lucille Manor Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the auditor’s recommendations have been adopted.