Finding Text
Finding reference number: #2024-002 Assistance Listing title and number (Federal award identification number and year): Project Based Rental Assistance, Assistance Listing No. 14.195 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: $16,431 Repeat Finding: Yes Statement of condition #2024-002 (Assistance Listing No. 14.195): During the year ended March 31, 2024, 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. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, REDI IV had surplus cash of $16,431. During the year ended March 31, 2024, the Corporation did not deposit surplus cash into the residual receipts account for REDI IV. At March 31, 2024, the residual receipts account for REDI IV is underfunded by $16,431. Cause: The Corporation did not make the required surplus cash deposit to the residual receipts account for REDI IV within 90 days after the end of the fiscal year. Recommendation: The Agent should transfer $16,431 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: September 11, 2024 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipt account are made within 90 days after the end of the fiscal year.