Finding 1130358 (2024-001)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Finance Agencies (HFA) Risk Sharing Assistance Listing Number: 14.188 Federal Award Identification Number and Year: 2024 Award Period: 01/01/2024 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. Any surplus funds in the project funds account at the end of the year shall be deposited into a federally insured account within 90 days following the end of the year. Condition: The Project did not remit the prior year's surplus cash balance of $32,962 to the residual receipts account within 90 days following the end of the prior year. Questioned costs: None Cause: The Project did not remit the prior year's surplus cash into the residual receipts account within 90 days following the end of the year. Effect: The Project owed the residual receipts account $32,962 at year-end. Recommendation: We recommend that management review the surplus calculation at year-end and ensure that any excess is deposited into the residual receipts account within 90 days following the end of the year. Views of responsible officials and planned corrective actions: Management remitted the prior year’s surplus cash in May 2024, over 90 days after year-end. Management will continue to calculate and review the surplus cash calculation to ensure that deposits to the residual receipts account are made timely.