Finding Text
Department of Housing and Urban Development
Finding No. 2023-001; Supportive Housing for the Elderly 14.157
Criteria
Residual receipt account balances in excess of the retained balance must be remitted to HUD at the time of PRAC contract expiration/renewal.
Condition
The Project did not remit excess receipts during 2023.
Cause
The procedures to request approval from HUD to remit excess residual receipts were not followed.
Effect or Potential Effect
The Project was unable to remit excess residual receipts during the required timeframe.
Questioned Costs
As of December 31, 2022, the excess residual receipts amount which was required to be remitted during 2023 amounted to $44,937.
Identification as a Repeat Finding
Not applicable.
Recommendation
Management should establish internal controls and procedures to ensure that required residual receipt remittances are made when required.
Auditor Noncompliance Code: Z - Other
Finding Resolution Status: In Process
Views of Responsible Officials
The Corporation agrees with the finding and the auditor's recommendations have been adopted.