Finding Text
Information on the Federal Program: Department of Housing and Urban Development, AL 14.181 Supportive Housing for Persons with Diabilities Questioned Costs: None How the questioned costs were computed: N/A Condition: Surplus cash generated at the end of fiscal year December 31, 2021 in the amount of $4,812 was not remitted to the residual receipts account within the required timeframe. The replacement reserve account requires a monthly deposit of $500 to be made. At the end of fiscal year December 31, 2022, no deposits were made. Criteria: Owners are required to remit any surplus cash generated at the end of the fiscal year to the residual receipt account within the required timeframe and to make required monthly deposits into the replacement reserve account. Cause: Due to turnover within the company, the requirement to remit the surplus cash to the residual receipts account and make the required monthly replacement reserve deposits were overlooked. Effect: The surplus cash remittance to the residual receipts account and required reserve deposits were not made in accordance with HUD guidelines. Recommendation: Policies and procedures should be reviewed to ensure timely remittance of surplus cash into the residual receipts account within the required timeframes and monthly required replacement reserve deposits are made. Views of Responsible Officials and Planned Corrective Actions: Kenwood Properties, Inc. agrees with the finding and review policies and procedures to ensure timely remittance and required deposits are made.