Answer: Surplus cash from HUD projects must be deposited in the residual receipts account within 60 days after the fiscal year ends.
Trend: Failure to comply with this requirement can lead to financial discrepancies and regulatory issues.
List: Ensure timely deposits, review compliance with regulatory agreements, and monitor cash flow management practices.
Finding Text
Criteria: All surplus cash available to each HUD project at the end of an annual fiscal period must be deposited in the residual receipts account for that project within sixty days of the fiscal period end in accordance with the provisions of the regulatory agreements.
Corrective Action Plan
Management recognizes the error made by not depositing the surplus cash in the proper account within 60 days of year end. We will address going forward.