Finding 392946 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-10

AI Summary

  • Core Issue: The Corporation failed to deposit $19,539 into the residual receipts account within the required 90 days after the fiscal year end.
  • Impacted Requirements: This non-compliance violates the HUD Regulatory Agreement regarding surplus cash deposits.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts in the future to avoid similar issues; management has confirmed compliance as of November 30, 2023.

Finding Text

Assistance Listing title and number (federal award identification and year): Section 207 pursuant to Section 223(f) of the National Housing Act, Assistance Listing No. 14.134 (Project identification number 054-11075, year 2023) Auditor non-compliance code: B - Failure to make required residual receipt deposit. Finding resolution status: Resolved. Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,539 Statement of condition #2023-001 (Assistance Listing No. 14.134): The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD Regulatory Agreement, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal year end. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. Cause: Management oversight. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: November 30, 2023 Management Response: Agree. Management deposited $19,539 into the residual receipts fund on November 30, 2023. No further action is required.

Corrective Action Plan

Finding #2023-001 Comments on the Finding and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Management Response: Agree. Management deposited $19,539 into the residual receipts fund on November 30, 2023. No further action is required.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Cash Management

Other Findings in this Audit

  • 969388 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $1.41M
14.195 Section 8 Housing Assistance Payments Program $340,864
14.191 Multifamily Housing Service Coordinators $81,193