Finding Text
Section II-Financial Statement Findings
Our audit disclosed no findings or questioned costs that are required to be reported.
Section III-Federal Award Findings and Questioned Costs
Finding reference number: 2023-001
Assistance Listing title and Number (Federal award identification and year): Supportive Housing for the Elderly, Assistance Listing Number 14.157 (Project identification number 122-EH528- WAH-NP and 1994)
Auditor non-compliance code: B – Failure to make required residual receipts deposit
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Noncompliance information: See Statement of Condition 2023-001 for noncompliance information.
Name of Federal agency: Department of Housing and Urban Development
Pass-through entity: N/A
Repeat finding: Yes
Questioned costs: $15,869
Statement of Condition 2023-001 (Assistance Listing Number 14.157) : The required residual
receipts deposit in the amount of $15,869 per the June 30, 2022 Computation of Surplus Cash,
Distributions and Residual Receipts was not deposited into the residual receipts account within 90 days
after the fiscal year end.
Criteria: Pursuant to Section 5(c) of the Regulatory Agreement, within 90 days after the end of each
fiscal year, any residual receipts realized from the operation of the mortgaged property shall be
deposited in a separate residual receipt account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. At June
30, 2023, the residual receipts account is underfunded by $15,869. Surplus cash at June 30, 2023 has
been reduced by $15,869.
Cause: This was an oversight by Management.
Recommendation: Management should make a deposit of $15,869 to the residual receipts account
for the underfunded amount. Additionally, management should make deposits, as required by the
Regulatory Agreement, on an annual basis.
Completion Date: August 24, 2023
Managements Response: Management concurs with the findings and recommendations.
Management made a deposit of $15,869 on August 24, 2023 to fully fund the residual receipts account
for the year ended June 30, 2023.