Finding Text
Criteria - Residual Receipts Account: Compliance Requirement – In accordance with the regulatory agreement, residual receipts reserve deposits should be made within 90 days of year end. Condition: During the year ended September 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $38,870 within 90 day of year end, as required by the HUD regulatory agreement. Effect: The Organization is not in compliance with the Regulatory Agreement. Context: The population included the 12 monthly bank statements. Cause: Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Repeat Finding: 2023-001 Questioned Costs: None. Recommendation: Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits. Views of Responsible Officials and Planned Corrective Actions: In the future, management will calculate and make an estimated deposit within the 90 days of year end.