Finding Text
Finding Reference Number: 2023-005
Title and Assistance Listing Number of Federal Program: CFDA 14.181 Supportive Housing for Persons with Disabilities
Type of Finding: Federal Award Finding: Federal Award Finding Finding Resolution Status: In Progress
Information on Universe Population Size: Not Applicable Sample Size Information: Not Applicable
Identification of Repeat Finding and Finding Reference Number: Not Applicable.
Criteria:
HUD regulatory agreement requires residual receipts to be deposited in a segregated account within 90 days following year end.
Statement of Condition:
The management company made the required deposit to residual receipts however the deposit was made after the required due date.
Cause:
Discussion with the auditor about surplus cash occurred on September 23, 2022, but due to management oversight, the deposit was not made until October 11, 2022.
Auditor Non-Compliance Code: B - Failure to make required residual receipts deposit
Questioned Costs: $0
Reporting Views of Responsible Officials:
After discussion with the auditor, management inadvertently neglected to make the deposit timely.
FHA/Contract Number: 127-HD025 Questioned Costs: $0
Context:
The deposit to the residual receipts account was made on October 11, 2022, after the required due date.
Effect:
The Corporation was not in compliance with HUD requirements with respects to the timing of the residual receipts deposit.
Recommendation:
Management should ensure that the required residual receipts deposit is made by the required due date.
Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations:
Management agrees with the finding and the auditor’s recommendation, and will take the necessary steps to mitigate further non-compliance.
Response Indicator: Agree (A) Completion Date: November 27, 2023
Response:
Management agrees with the recommendation of the auditor, and will ensure that future residual receipts deposits are made timely.