Finding 1208405 (2024-003)

Criteria: The Organization is required to remit to HUD all excess residual receipts (defined as the balance in the residual receipts account in excess of $250 per unit) annually upon the expiration and/or renewal of the PRAC until such time as HUD suspends the recapture requirement. Statement of Condition: The Organization did not remit all of its excess residual receipts to HUD. Cause of condition: While the Organization established a liability account for its excess residual receipts in a prior year and remitted most of the amount to HUD during the current year, the Organization did not remit the full amount of its excess residual receipts to HUD. Effect of condition: Excess residual receipts were not remitted to HUD as required. Recommendation: The Organization should contact HUD to facilitate the remittance of excess residual receipts. Views of Responsible Officials: Management agrees with the finding and will contact HUD to ensure that all excess residual receipts are remitted to HUD as soon as possible.