Finding 1161457 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-10-28

AI Summary

  • Core Issue: Excess residual receipts were withdrawn but not returned to HUD as required.
  • Impacted Requirements: HUD mandates that excess residual receipts must be returned; failure to do so violates this requirement.
  • Recommended Follow-Up: Implement a procedure to ensure that any withdrawals are promptly returned to HUD.

Finding Text

Finding status: In process Information or Universe Population Size: residual receipts withdrawal. Sample Size Information: One withdrawal. Indication of repeat finding: no Criteria: Excess residual receipts are required to be returned to HUD. Condition: HUD 9250 form was approved to have the excess residual receipts returned to HUD. The withdrawal was made from the residual receipts account but not returned to HUD. Cause: Lack of oversight by property manager. Effect: Residual receipts required to be returned to HUD are in the operating cash account for the property. Context: Auditor received the 9250 form noting that approval was given for the amount in excess of the $250 per unit to be returned to HUD. The withdrawal was made and deposited into the operating account and was not returned to HUD. Recommendation: A procedure be implemented to ensure if withdrawals are made that they are immediately returned to HUD.

Corrective Action Plan

Plan: Residual Funds Return Process All residual funds identified for return to HUD must be submitted to the Fiscal Department along with the following: • HUD Form HUD-9250 • A completed check request Once both documents are received: 1. The Fiscal Department will initiate a bank transfer from the Residual Checking Account to the General Checking Account. 2. After the internal transfer is completed, the check request will be processed, and payment will be submitted to HUD. Note: The Program Director is responsible for submitting both the HUD-9250 form and the check request. Funds will not be transferred from the Residual Account to General Checking unless both documents have been received. The Fiscal Department will manage the internal transfer, issue the payment, and mail payment to HUD. Contact: Christina Morin, Program Director Anticipated completion date: October 1, 2025

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 1161456 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.62M