FAC Explorer

Finding 291 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-11
Audit: 518
Organization: Passavant Memorial Homes Vii (PA)
Auditor: Baker Tilly US LLP

AI Summary

  • Issue: Surplus cash was deposited late, beyond the required 60-day deadline.
  • Requirement: HUD mandates that year-end surplus cash must be deposited into the residual receipts account within 60 days.
  • Follow-up: Ensure timely deposits of surplus cash in the future to comply with HUD regulations.

Finding Text

During the process of performing the annual financial statement audit, we noted that the Home had positive surplus cash as of June 30, 2022, which was deposited subsequent to the 60 day deposit deadline into the residual receipts account during the year ended June 30, 2023.HUD requires that surplus cash calculated at year-end be deposited into the residual receipts account within 60 days of year-end.

Corrective Action Plan

Management notes that the deadline for the June 30, 2023 deposit has already been missed, however, plans to implement additional controls to ensure that future surplus cash (starting with the 2024 required deposit) is deposited into the residual receipts account within 60 days of year-end in accordance with HUD requirements.

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 576733 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $818,503