Finding 24758 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-12

AI Summary

  • Core Issue: The Organization failed to deposit surplus cash of $6,476 into the required residual receipts account by the September 30, 2021 deadline.
  • Impacted Requirements: This oversight violates the HUD regulatory agreement that mandates timely deposits based on surplus cash calculations.
  • Recommended Follow-Up: Implement a process to ensure timely calculations and deposits are consistently made in the future.

Finding Text

Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) ? Criteria or specific requirement: In accordance with the HUD regulatory agreement, the Organization shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year based on the surplus cash calculation. Condition: The Organization has surplus cash in its June 30, 2021, financial statements of $6,476 which was required to be deposited September 30, 2021, and was not deposited. Cause: There was an oversight by the Finance Department when reviewing the financial statements and the transfer was not made. Recommendation: We recommend that a process be put in place to ensure the calculation and any necessary deposits are made timely. Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.

Corrective Action Plan

Identifying Number: 2022-001 Finding: The Organization did not deposit cash surplus into the residual receipts account in a timely manner. Contact Person Responsible for Corrective Action: Richard Manall, CFO Corrective Action Taken or Planned: Review of the financial statement now includes the process of making the cash surplus cash transfer into the residual receipts account. Anticipated Completion Date: September 14, 2022.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $40,856