Finding Text
Criteria Any balance in Manor's residual receipts reserve account greater than $250 per unit must be remitted to HUD's Accounting Center upon termination of the PRAC, in accordance with the Consolidated Appropriations Act, 2016 enacted on December 18, 2015 applicable for projects with PRAC expiration dates through September 30, 2026. Termination is defined as expiration of the contract term which for most PRACs is the annual contract anniversary date. Manor's PRAC contract expired on April 30, 2025. Condition During the year ended December 31, 2025, management did not submit Form HUD-9250, "Fund Authorization" to HUD upon termination of the PRAC. As a result, management did not remit excess residual receipts of $418 as of April 30, 2025, to HUD. Cause The amount held in the residual receipts reserve was not returned to HUD due to management not submitting Form HUD-9250 on a timely basis. Effect or Potential Effect The holding of excess funds in the residual receipts reserve is a violation of HUD's required release of funds above the declared threshold of $250 per unit. Questioned Costs None. Context Isolated instance which was not part of a statistical sample. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation Management should immediately submit the Form HUD-9250, "Fund Authorization" and disburse any excess funds from the residual receipts reserve to HUD upon approval of Form HUD-9250. Auditor Noncompliance Code: Z- Other Finding Resolution Status: In-process Views of Responsible Officials The 2025 Manor renewal was submitted to HUD before the excess income was in the account. A 9250 for $584.59 has been submitted to HUD for approval of returning in excess residual receipts.