Finding 1148034 (2024-001)

Significant Deficiency
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2025-07-17
Audit: 362509
Organization: Margate Terrace Corporation (NJ)

AI Summary

  • Core Issue: The Corporation failed to deposit $103,332 in surplus cash to the residual receipts account as required by the Regulatory Agreement.
  • Impacted Requirements: Non-compliance with HUD regulations and the terms of the Regulatory Agreement regarding timely deposits.
  • Recommended Follow-Up: Management must transfer the $103,332 by June 30, 2025, and ensure future deposits are made on time.

Finding Text

Title and ALN Number of Federal Program - 14.155 - Federal Program; Type of Finding - Federal Award Finding; Finding Resolutino Status - Unresolved; Information on Universal Population Size - N/A; Sample Size Information - N/A; Identification of Repeate Finding and Finding Reference Number - N/A; Criteria - Pursuant to the requirements of the Regulatory Agreement, the Corporation is required to comply with all HUD regulations and other requirements. The Regulatory Agreement establishes the requirement to deposit surplus cash to the residual receipts fund; Statement of Condition - At June 30, 2024 the residual receipts deposited calculated in the June 30, 2023 audit was not deposited to the residual receipts account; Cause - Management did not make the required residual receipts deposit as calculated in the June 30, 2023 audited financial statements; Effect or Potential Effect - The Corporation is not in compliance with the terms of the Regulatory Agreement; Auditor Non-Compliance Code - A; Questioned Costs - $103332; Reporting Views of Responsible Officials - Management will ensure future residual receipts deposits are made timely; Context - Residual receipts are required to be deposited within 90 days following yearend. The Corporation did not have sufficient funds during the year ended June 30, 2024; Management should transfer $103332 to ensure that the residual receipts account is adequately funded; Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management will ensure future residual receipts deposits are made timely; Response Indicator - Agree; Completion Date - 06/30/2025; Response - Management will ensure future residual receipts deposits are made timely

Categories

Questioned Costs HUD Housing Programs Cash Management Reporting

Other Findings in this Audit

  • 571592 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $5.78M
14.195 Section 8 Housing Assistance Payments Program $1.23M