Finding 392042 (2023-001)

Finding 2023-001: Surplus cash in the amount of $29,198 from the surplus cash calculation for the year ended December 31, 2022, was not deposited into the residual receipts account until January 2024. Criteria: Any surplus cash in the project funds account (including interest) at the end of the fiscal year shall be deposited into the residual receipts account within 90 days following the end of the fiscal year. Condition: Management anticipated receiving formal notification from HUD for the amount due after the audit had been completed and submitted to the Agency. Cause: Oversight in management’s procedures for remitting payments of surplus cash to the residual receipts account. Effect: The surplus cash payment due to the residual receipts account was not remitted timely. Recommendation: We recommend that management implement procedures to ensure payments of surplus cash are remitted timely to the residual receipts account. Questioned Costs: $29,198 View of Responsible Officials: Management will remit surplus cash payments due to the residual receipts account within the 90 days following the fiscal year end going forward.