Finding Text
Department of Housing and Urban Development Finding 2022-001 Questioned Costs: $141,592 Information on Universe and Population Size: The population consists of the deposit due to the residual receipts reserve. Sample Size Information: Sampling does not apply. All deposits were tested; 100 percent of the population was tested. Noncompliance Information: During the year ended December 31, 2022, the Project did not make the required deposit to the residual receipts reserve within 90 days after year-end. Condition: The Project did not make the required deposit to the residual receipts reserve timely. Criteria: HUD regulations require the required deposit to the residual receipts reserve be made within 90 days of year-end. Cause: Management had originally intended to request approval from HUD to waive the required residual receipts deposit. Management ultimately decided not to make this request of HUD and inadvertently missed making the deposit due to turnover in the accounting department. Effect or Potential Effect: The residual receipts reserve was underfunded. Recommendations: The Project should deposit the required amount of $141,592 into the residual receipts reserve. Management Comments: Management agrees with the finding and recommendations. The required deposit in the amount of $141,592 was deposited into the residual receipts reserve on March 31, 2023. Auditor Non-compliance Code: B - Failure to make required Residual Receipts deposit. Status: Cleared