Finding 380525 (2023-001)

Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Department of Housing and Urban Development requires any surplus funds in the project funds account at the end of the fiscal year to be deposited in a federally insured account within 60 days following the end of the fiscal year. Condition: As of June 30, 2023, Margaret B. Mack Supportive Housing Corporation has a surplus cash of $31,588. A residual receipt account was not established and the required deposit was not made within 60 days following the end of the fiscal year. Questioned costs: None Context: We reviewed the surplus cash calculation noting that Margaret B. Mack Supportive Housing Corporation has a surplus cash of $31,588 at the end of the fiscal year. A residual receipt account should have been established and the surplus cash should have been deposited within 60 days following the end of the fiscal year. Cause: This was an oversight by management. Effect: A residual receipt account was not properly established and the required deposit was not made as required by the Department of Housing and Urban Development. Repeat Finding: Yes Recommendation: We recommend that management establish the residual receipt account and make the required deposit as soon as possible. Views of Responsible Officials: There is no disagreement with the audit finding.