Finding Text
2023-001 Residual Receipts Deposits
CONDITION:
Residual receipts deposit was not deposited into an interest-bearing bank account.
CRITERIA:
The Project is required to deposit residual receipts with the mortgagee, or other HUD-approved depository, in an interest-bearing bank account.
EFFECT:
The Project is not in compliance with award requirements.
CONTEXT:
Surplus cash at January 31, 2022 was appropriately deposited into a HUD-approved account. However, the Project failed to deposit the funds into an interest-bearing account.
CAUSE:
The Project was unaware that the funds needed to be deposited into an interest-bearing account.
RECOMMENDATION:
The Project should contact the bank and transfer the funds into a HUD-approved interest-bearing account. In addition, the account should not be subject to monthly service charges or fees.
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS:
Management acknowledges the finding and has contacted the bank to make the appropriate changes. As of May 2, 2023, the bank has confirmed that fees will no longer be charged to the account and the process of transitioning to an interest-bearing account is in-process.
2023-001 Residual Receipts Deposits
CONDITION:
Residual receipts deposit was not deposited into an interest-bearing bank account.
CRITERIA:
The Project is required to deposit residual receipts with the mortgagee, or other HUD-approved depository, in an interest-bearing bank account.
EFFECT:
The Project is not in compliance with award requirements.
CONTEXT:
Surplus cash at January 31, 2022 was appropriately deposited into a HUD-approved account. However, the Project failed to deposit the funds into an interest-bearing account.
CAUSE:
The Project was unaware that the funds needed to be deposited into an interest-bearing account.
RECOMMENDATION:
The Project should contact the bank and transfer the funds into a HUD-approved interest-bearing account. In addition, the account should not be subject to monthly service charges or fees.
VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS:
Management acknowledges the finding and has contacted the bank to make the appropriate changes. As of May 2, 2023, the bank has confirmed that fees will no longer be charged to the account and the process of transitioning to an interest-bearing account is in-process.