Finding 369965 (2023-002)

Finding No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Residual receipts. Sample Size Information: Residual receipts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, surplus cash must be deposited into the residual receipts account within 90 days after year end. Statement of Condition: The Project did not deposit surplus cash of $23,031 into the residual receipts account within 90 days after year end. Cause: The Project did not perform a surplus cash computation in a timely manner. Effect or Potential Effect: The Project is noncompliant with the HUD requirement to deposit surplus cash into the residual receipts account within 90 days after year end. Auditor Non-Compliance Code: B – Failure to make required residual receipts deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the Project performs a surplus cash computation and deposits any required funds into the residual receipts account in a timely manner. Response Indicator: Agree. Completion Date: 6/30/2024 Response: Management will provide additional HUD training inclusive of surplus cash deposit requirements to new accountants and/or consultants.