Finding 33851 (2022-001)

Condition - The prior year surplus cash on the amount of $7,133 was not deposited into the residual receipts account for the year ended March 31, 2022. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account in accordance with HUD requirements within 90 days after the close of the fiscal year. Effect - The Company was not in compliance with the above HUD regulations. Cause ? Surplus cash was not deposited into the residual receipts account. Recommendation - We recommend that the surplus cash in the amount of $7,133 be deposited into the residual receipts account as soon as possible. Management?s Reply - Management understands HUD's requirements for depositing surplus cash into the residual receipts account and will deposit the delinquent deposit of $7,133 into the residual receipts by July 8, 2022.