Finding Text
Federal Award Findings and Questioned Costs Section 811 Capital Advance Program ? CFDA No. 14.181 Finding # 2022-001: Section 811 Capital Advance Program ? CFDA No. 14.181 Condition - Noncompliance with Capital Advance Program Regulatory Agreement Section 5(c) which requires deposit of residual receipts within sixty days after year end. The June 30, 2021 residual receipts amount of $35,342 was required to be deposited within sixty days after year end, August 29, 2021. This amount was deposited in two payments of $7,825.57 on September 30, 2021 and $27,516.46 on December 20, 2022. Both payments are considered late. Criteria ? Capital Advance Program Regulatory Agreement Section 5(c) states that within sixty days after the end of each year, residual receipts realized from the operation of the mortgaged property shall be deposited into a separate residual receipts account. Effect ? Violation of Capital Advance Program Regulatory Agreement Section 5(c). Cause ? Management incorrectly calculated the required residual receipt amount. Recommendation ? Management should strengthen controls to ensure detection of errors in the calculation of the amount to be deposited to the residual receipts account and to ensure the deposit is made within the time period required.