Finding 29917 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-27
Audit: 32874
Organization: Northwest Estates 811 (WA)

AI Summary

  • Core Issue: The Organization failed to deposit $4,314 in residual receipts within the required 60-day timeframe after year-end.
  • Impacted Requirements: Residual receipts must be deposited in a separate, interest-bearing account to support property operations, as mandated by HUD.
  • Recommended Follow-Up: Ensure timely funding of the residual receipts account moving forward, as acknowledged in the management's corrective action plan.

Finding Text

2022 ? 001 Required Reserve Deposits CFDA Numbers Name of Federal Program 14.181 HUD - Section 811, Supportive Housing for Disabled Persons Finding: The Organization did not deposit the residual receipts amount due for the year ending December 31, 2021 within 60 days. Repeat Finding: Not a repeat finding from 2021 Criteria: The Organization is required to deposit residual receipts within 60 days after year-end in a separate, interest bearing account. The funds can be used for the operating needs of the property, including debt service, with the prior written approval of HUD. Condition, context and cause: The Surplus Cash computation prepared as of December 31, 2021 determined there was $4,314 of Surplus Cash and a deposit of this amount was due to the Residual Receipts account within 60 days. A partial deposit of $27 was made to the Residual Receipts account in April 2022. Sample size and population: Sampling was not applicable to this finding. Effect: The Organization did not comply with the Residual Receipts deposit requirements. Recommendation: We recommend the Organization fund the residual receipts accounts as required. Questioned Costs: N/A Management Response and Corrective Action Plan: We understand the auditors? finding and will monitor residual receipts deposits so they are made within 60 days of year end as required. Contact Person: Tom Anderson

Categories

HUD Housing Programs

Other Findings in this Audit

  • 29916 2022-001
    Material Weakness
  • 606358 2022-001
    Material Weakness
  • 606359 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $579,923
14.181 Supportive Housing for Persons with Disabilities $52,718