Finding Text
Section II-Financial Statement Findings Our audit disclosed no findings or questioned costs that are required to be reported. Section III-Federal Award Findings and Questioned Costs Finding reference number: 2022-001 Assistance Listing title and Number (Federal award identification and year): Supportive Housing for the Elderly, Assistance Listing Number 14.157 (Project identification number 122-EH528- WAH-NP and 1994) Auditor non-compliance code: B ? Failure to make required residual receipts deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Noncompliance information: See Statement of Condition 2022-001 for noncompliance information. Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Repeat finding: No Questioned costs: $9,607 Statement of Condition 2022-001 (Assistance Listing Number 14.157): The required residual receipts deposit in the amount of $9,607 per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited into the residual receipts account within 90 days after the fiscal year end. Criteria: Pursuant to Section 5(c) of the Regulatory Agreement, within 90 days after the end of each fiscal year, any residual receipts realized from the operation of the mortgaged property shall be deposited in a separate residual receipt account. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June 30, 2022, the residual receipts account is underfunded by $9,607. Surplus cash at June 30, 2022 has been reduced by $9,607. Cause: This was an oversight by Management. Recommendation: Management should make a deposit of $9,607 to the residual receipts account for the underfunded amount. Additionally, management should make deposits, as required by the Regulatory Agreement, on an annual basis. Completion date: August 4, 2022 Management's response: Management concurs with the findings and recommendations. Management made a deposit of $9,607 on August 4, 2022 to fully fund the residual receipts account for the year ended June 30, 2022.