Finding Text
Finding Type ‑ Immaterial noncompliance with major program requirements
Title and Assistance Listing Number of Federal Program ‑ U.S. Department of Housing and Urban Development ‑ Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects (ALN #14.155)
Finding Resolution Status ‑ Resolved
Information on Universe and Population Size ‑ N/A
Sample Size Information ‑ N/A
Identification of Repeat Finding and Finding Reference Number ‑ N/A
Criteria ‑ The Organization should deposit surplus cash within the time frame specified in the FRAG Guide
Statement of Condition ‑ The Organization deposited prior year surplus cash 139 days after the deadline, as stated in the Real Estate Assessment Center’s Summary of Financial Reporting and Auditing Guidance for HUD (the "FRAG Guide") under Section 2.8.
Cause ‑ The Organization failed to monitor the cash requirements of the residual receipts account as specified by the FRAG Guide.
Effect or Potential Effect ‑ The residual receipts account was not funded timely in accordance with the FRAG Guide.
Auditor Noncompliance Code ‑ B ‑ Failure to make required residual receipt deposits
Reporting Views of Responsible Officials ‑ Management is aware of the requirement to deposit surplus cash within 90 days after the fiscal year end. Noncompliance was addressed by depositing the surplus cash amount of $10,197 on February 14, 2023.
Recommendation ‑ The surplus cash deposit amount should be deposited to the residual receipts account within the specified time frame required by the FRAG Guide.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations ‑ Management should deposit surplus cash within the time frame required by the FRAG Guide.
Response Indicator ‑ Agree
Completion Date ‑ February 14, 2023
Response ‑ Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $10,197 into residual receipts on February 14, 2023.