Finding 370487 (2023-002)

Finding No. 2023-002: Section 202 Supportive Housing for the Elderly – (Capital Advance) – CFDA NO. 14.157 a. Statement of condition: The required deposit of surplus cash of $14,605 as of June 30, 2022 to the residual receipts reserve account was not made within the required 90 days following the statement of financial position date. b. Criteria: St. David’s Housing Development Fund Company, Inc. is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 90 days of the project’s fiscal year-end. c. Effect of condition: The project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve. d. Cause of condition: The St. David’s Housing Development Fund Company, Inc. $14,605 deposit due will be paid as soon as possible. St. David’s Housing Development Fund Company, Inc. should deposit the required funds in the future into the residual receipts reserve account within the 90-day requirement. f. Views of responsible officials and planned corrective actions: St. David’s Court agrees with the finding and the auditor’s recommendations have been adopted.