Finding Text
Finding 2026-001 Information on the Federal Program: Assistance Listing Number 14.157 – Supportive Housing for the Elderly (Section 202). HUD Contract #: MA06-S071001. Compliance Requirements: Special Tests and Provisions. Type of Finding: Material Noncompliance. Criteria: Residual Receipts - In accordance with the applicable HUD Regulatory Agreement and HUD requirements, surplus cash generated by the project is required to be deposited into the Residual Receipts account within the required timeframe following the end of the applicable fiscal period. Condition: For the year ended June 30, 2026, the Organization did not timely deposit surplus cash of $22,198 into the Residual Receipts account. The amount was required to be deposited by September 30, 2025; however, the Organization did not make the deposit until September 2026. Cause: The Organization did not have adequate procedures in place to ensure the required surplus cash deposit was identified and made within the timeframe required by HUD. Effect or Potential effect: As a result, the Organization was not in compliance with HUD requirements related to the timely deposit of surplus cash into the Residual Receipts account. The full amount of $22,198 was subsequently deposited in September 2026. Questioned Costs: $22,198 Context: There was one year delay on the deposits of Residual Receipts.. Repeat Findings: No Recommendation: The Organization should establish procedures to ensure surplus cash is calculated and deposited into the Residual Receipts account within the timeframe required by HUD. The Organization should also maintain documentation supporting the calculation and timely deposit of surplus cash. Views of Responsible Official: We will establish necessary procedures and ensure going forward all surplus cash are timely deposited.