Finding Text
Criteria During the year ended June 30, 2025, the Partnership deposited an extra $35,468 into the Residual Receipts account. Condition The terms of the regulatory agreement require distributions to be limited to available surplus cash computed on a semi-annual or annual basis. Cause Procedures were not in place to ensure that distributions of cash were limited to available surplus cash in accordance with HUD regulations. Effect or Potential Effect The payments of $35,468 are unauthorized distributions and therefore considered to be questioned costs. Questioned Costs $35,468 Identification as a Repeat Finding This is not a repeat finding. Recommendation Management should immediately reimburse the project's cash account for the unauthorized distribution to the Residual Receipts account. Auditor Noncompliance Code: H. Unauthorized distribution of project assets. Views of Responsible Officials Management agrees with the findings and recommendations and has implemented reviews of the financial statements by senior management prior to approving transfers to ensure accuracy of information. Finding Resolution Status: In process.