Finding 1220312 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-29

AI Summary

  • Issue: The project failed to deposit residual receipts within the required 60 days after the fiscal year-end on September 30, 2024.
  • Impact: This oversight leads to noncompliance with HUD guidelines, although there are no questioned costs.
  • Follow-up: Management should improve the financial closing process to ensure timely deposits of excess cash into the residual receipt account.

Finding Text

2025-002: Special Test & Provisions - Residual Receipts Deposit Federal Agency: Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities (Section 811) ALN No.: 14.181 Compliance Requirements: Special Tests and Provisions Condition: The Project did not make the required residual deposit within 60 days following the fiscal year ending September 30, 2024. Criteria: Residual Receipts are to be deposited with 60 days following the fiscal year-end. Context: The discrepancy was noted upon review and testing of residual receipts. Cause: Procedures were overlooked as a result of staffing issues Effect: Noncompliance with HUD guidelines. Questioned Costs: $0 Recommendation: Management should ensure that financial closing process is completed timely to facilitate the computation of any excess cash for deposit to the residual receipt account. Views of Responsible Officials: Surplus cash was deposited late; procedure was overlooked as a result of staffing issues.

Corrective Action Plan

Corrective Action: Currently, we are reviewing scheduling priorities to be able to meeting HUD timeline. Proposed Completion Date: December 27, 2024

Categories

HUD Housing Programs Cash Management Special Tests & Provisions

Other Findings in this Audit

  • 1220311 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.58M
14.U01 PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) $226,658