Finding Text
In order to be in compliance with U.S. Department of Housing & Urban Development, Section 811 Capital Advance (Supportive Housing for persons with Disabilities) Federal Assistance Listing number 14.181, Building Futures, Inc. is required to make a deposit to the Residual Receipts account if there is a surplus of cash in the project funds account at fiscal year-end. During our audit procedures, we noted that there was a surplus of cash in the projected funds account for the year ending June 30, 2025. Building Futures, Inc. did not make a deposit into the Residual Receipts account within 60 days following the end of the fiscal year. We recommend that management have a heightened awareness of the cash balance is the project funds less accounts payable, prepaid rents, and tenant deposits at fiscal year-end in order to ensure that Residual Receipts deposits are made in the correct manner.