Finding Text
Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195
Identification numbers Property Year of award Questioned costs
CO99T851006 REDI IV 2017 $51,630
CO99T841007 REDI III 2017 $19,654
Auditor non-compliance code: N - Special Tests and Provisions
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $71,284
Repeat Finding: No
Statement of condition #2023-002 (Assistance Listing No. 14.195): During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Finding reference number: #2023-002 (continued)
Criteria: The HAP Contracts require that surplus cash, as defined, to be deposited into either a residual receipts account or reserve for replacement account within 90 days after the end of the fiscal year.
Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, REDI III had surplus cash of $51,630. During the year ended March 31, 2023, the Corporation did not deposit surplus cash into the residual receipts account for REDI III. At March 31, 2023, the residual receipts account for REDI III is underfunded by $51,630. At March 31, 2022, REDI IV had surplus cash of $19,654. During the year ended, March 31, 2023, the Corporation did not deposit surplus cash to the residual receipts account for REDI IV. At March 31, 2023, the residual receipts account for REDI IV is underfunded by $19,654.
Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI III and REDI IV within 90 days after the end of the fiscal year.
Recommendation: The Agent should transfer $51,630 from the REDI III operating account to the residual receipts account and $19,654 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year.
Completion date: October 19, 2023 (REDI III), December 13, 2023 (REDI IV)
Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipts account are made within 90 days after the end of the fiscal year.