Finding Text
Condition - The residual receipts account is underfunded by $52,634 at September 30, 2025. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit surplus cash in a residual receipts account. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The residual receipts account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2024-003 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $52,634 for the year ended September 30, 2025 be deposited into the residual receipts account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will reach out to HUD to request a wavier of the delinquent amount of $52,634. If the request does not get approved, Management will work towards an acceptable resolution.