Finding 20290 (2022-001)

Finding 2022-001 Instance of Noncompliance in Internal Controls over Compliance for Special Tests and Provisions Related to the Residual Receipts Account. Federal Agency: U.S. Department of Housing and Urban Development Program Title: Supportive Housing for the Elderly (Section 202) CFDA Number: 14.157 Award Number: 133-EE008 Award Period: September 30, 1999 through September 30, 2039 Criteria Per CFR 891.600 (e) Any project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Condition/Context for Evaluation As part of our audit procedures we noted the deposit for residual receipts of $19,697 at September 30, 2021 was not deposited within 60 days following the fiscal year end. The required deposit was subsequently made. Questioned Costs Not applicable Effect or Potential Effect Casa Bienvivir is out of compliance with the special tests and provisions residual receipts requirements and did not make its required deposit timely. Repeat Finding Not applicable, as no similar finding was noted in the prior year audit of Casa Bienvivir. Cause Proper internal controls were not established to ensure payment is made annually within 60 days following the end of the fiscal year. Recommendation We recommend that Casa Bienvivir establish additional controls to ensure payments are made in accordance with the U.S. Department of Housing and Urban Development requirements. View of Responsible Officials of the Auditee Funding of the residual receipts reserve account will be made in a timely manner.