Finding Text
Failure to Return Residual Receipts to HUD Criteria:Pursuant to the June 19, 2015 HUD issued memorandum, owners must remit funds from the residual receipts account in excess of $250 per unit to HUD. Condition: The Organization did not transfer project funds to the residual receipts accounts in a timely manner and did not return residual receipts in excess of $250 per unit. Questioned Costs: Unknown. Context:Management did not transfer the surplush cash to the residual receipts accounts or return residual receipts balances in excess of $250 per unit to HUD. Effect: The Organization is not in compliance with 24 CFR §891.400(e) and the June 19, 2015 HUD memorandum.
Cause: The Organization did not have controls in place to identify the requirements of returning residual receipts to HUD in a timely manner. Recommendation: We recommend that management return the amounts over the retained balance level to HUD. Identification of repeat finding: This is an ongoing finding. Management's Response: Management concurs with the finding. See Corrective Action Plan.