Finding 28465 (2022-002)

Condition: The Organization did not make the surplus cash deposit of $6,606 to the residual receipts account within 60 days after year-end as required by HUD. Criteria: Within 60 days at the end of each fiscal year, surplus cash must be paid to the residual receipts account. Cause: The management company did not calculate the surplus cash and remit the deposit within 60 days. Instead, the management company waited until the audit was completed to remit the surplus cash deposit. Effect: The cash deposit to the residual receipts account was not made timely. Recommendation: The Organization should perform its own calculation of surplus cash and remit required deposits to the residual receipts account within 60 days after year-end as required by HUD. Views of Responsible Officials and Planned Corrective Actions: Corrected. The Organization remitted the required amount of surplus cash to the residual receipts account. In the future, management will try to remit deposits in a timely manner, within 60 days after yearend.