Finding Text
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 223(f) HUD Insured Mortgage Note Listing Number: 14.155 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A FAIN number and year: 800010775-2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Project is required to make a deposit into the residual receipts account within 90 days after year end in the amount of any surplus cash. Condition: Management did not make the deposit before March 31, 2025. Questioned costs: None Context: The project made the deposit in May 2025 rather than before March 31st. Cause: The project did not have the controls in place to ensure the deposit was made timely. Effect: The project did not make the $3,208 deposit into the residual receipts account until after the required due date. Repeat Finding: N/A Recommendation: We recommend management ensure they have controls and processes in place to make the residual receipts deposit timely. Views of the responsible official and planned corrective actions: No disagreements with the finding.