Finding 30354 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-04-30

AI Summary

  • Core Issue: The annual surplus cash from 2021 was not deposited into the residual receipts account as required.
  • Impacted Requirements: This oversight may lead to noncompliance with HUD agreement provisions.
  • Recommended Follow-Up: Ensure the surplus cash is deposited immediately; management has already taken corrective action by making the deposit.

Finding Text

Department of Housing and Urban Development Finding 2022-001: Delinquent Residual Receipts Deposit Condition: The calculated annual surplus cash from the year ended December 31, 2021, was not deposited into the residual receipts account during the current year. Criteria: The calculated annual surplus cash is required to be deposited into the residual receipts account. Effect: Potential noncompliance with HUD agreement provisions. Cause: Management oversight resulted in the calculated annual surplus cash from the year ended December 31, 2021, to not be deposited into the residual receipts account during the current year. Recommendation: The calculated annual surplus cash from the year ended December 31, 2021, should be deposited into the residual receipts account immediately. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has deposited the calculated annual surplus cash from the year ended December 31, 2021, into the residual receipts account subsequent to year-end. Questioned Costs: $50,831

Corrective Action Plan

U.S. Department of Housing and Urban Development Mullally Manor, Inc. d/b/a Casa San Pablo (FHA/Contract No. 067-11118) respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Bolerjack, Halsema, Bowling & White PA 42 South Peninsula Drive Daytona Beach, FL 32118 Audit Period: For the year ended December 31, 2022 The findings from the December 31, 2022 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. B. FINDINGS RELATED TO THE FINANCIAL STATEMENTS WHICH ARE REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS None C. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARDS Finding 2022-001: Delinquent Residual Receipts Deposits Recommendation: The calculated annual surplus cash from the year ended December 31, 2021, should be deposited into the residual receipts account immediately. Action Taken: The Project deposited the required residual receipts amount subsequent to year-end. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Mr. Rex Snyder at 205-933-1020. Sincerely yours, Mullally Manor, Inc. d/b/a Casa San Pablo

Categories

Questioned Costs HUD Housing Programs Cash Management Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.50M
14.195 Section 8 Housing Assistance Payments Program $836,475