Finding 2025-004 Plan: Management acknowledges this finding. The surplus cash deposit was not made within the required 90-day timeframe following fiscal year-end because an Owner-Certified REAC submission was filed while awaiting completion of the audited financial statements. Management incorrectly believed the surplus cash calculation and deposit could be deferred until the audited REAC was submitted. To prevent this from occurring in the future, management has implemented a procedure requiring surplus cash to be calculated immediately following fiscal year-end, regardless of whether an Owner-Certified REAC or Audited REAC is submitted. Management will estimate and deposit any required surplus cash into the Residual Receipts Account within HUD's required 90-day timeframe and make any necessary adjustments after the audited financial statements are completed. Management has reviewed HUD requirements with applicable staff and will monitor future year-end submissions to ensure compliance with all surplus cash deposit requirements. Contact: Jackie Oliveira-Director of Affordable Housing Completion Date: 03/31/2026