Finding 1159586 (2024-001)

Item 2024-001 - Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing 14.181 Criteria: Compliance Requirement – Any surplus funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR section 891.400(e)). Condition: Surplus cash was not deposited into the residual receipts account with 60 days. Effect: The deposit was not made timely. Context: A review of the account activity was performed and no deposits were made. Cause: Procedures in place to ensure that the deposit is made were not followed. Recommendation: Management should review its surplus cash calculation at or near year end to determine whether the project is in a surplus cash position. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will make the required deposit.