Finding Text
Finding 2026-001: Deposit of Surplus Cash into a Residual Receipts Account Department of Housing and Urban Development (HUD)- AL #14.157 Supportive Housing for the Elderly- Capital Advance Questioned Cost : None Condition: Hickory Estates had surplus cash of $6,714 on hand at March 31, 2025. Surplus cash was not remitted within 90 days of year end. Criteria: The Consolidated Audit Guide for Audits of HUD Programs and the compliance requirements for AL #14.157 state that any surplus cash as calculated under HUD guidelines in the project funds account at the end of the fiscal year be deposited in a federally insured residual receipts account within 90 days following the end of the fiscal year. Cause: Management did not complete the surplus cash deposit within the required timeframe. Effect: Due to the above noted condition, Hickory Estates was not in compliance with this particular HUD compliance requirement. Recommendation: Hickory Estates should ensure that a timely deposit is made, as required by HUD. Views of Responsible Officials: Hickory Estates agrees with the audit finding and has written a corrective action plan.