Finding 1114711 (2022-001)

2022-001: The Organization did not make the required deposit of surplus cash into their residual receipt reserve account as calculated on their prior fiscal year-end audit report as required by HUD. Criteria: The Organization is required to deposit their surplus cash into their residual receipt reserve within 90 days after receiving their annual audit report. Condition: The Organization did not deposit their surplus cash into their residual receipt reserve within 90 days after receipt of their annual audit report. Effect: The Organization was not in compliance with the HUD requirement to deposit their surplus cash into their residual receipt reserve on time. Cause: The Organization had a change in staff and the requirement to make this deposit was not clearly conveyed to the employee responsible for making the deposit. Recommendation: We recommend the Executive Director utilize the annual audit reports to make any surplus cash deposits into the Organization's residual receipt reserve in a timely manner as required by the HUD agreement. Depositing the cumulative surplus cash amount as calculated on this year's audit report will remedy the undeposited surplus cash from the prior year. Response: The Executive Director agreed with the recommendation and will implement necessary procedures to ensure that any surplus cash amounts are properly deposited in accordance with the HUD agreement.