Finding Text
Finding 2023-001: Deposit of Surplus Cash into a Residual Receipts Account
Department of Housing and urban Development (HUD) - AL #14.181
Supportive Housing for Persons with Disabilities - Capital Advance
Questioned Costs: None
Condition: Friendship House Apartments, Inc. had surplus cash of $19,279 on hand at September 30, 2022.
Surplus cash was not remitted within 90 days of year end.
Criteria: The Consolidated Audit Guide for Audits of HUD Programs and the compliance requirements for AL
#14.181 state that any surplus cash as calculated under HUD guidelines in the project funds account at the end of
the fiscal year be deposited in a federally insured residual receipts account within 90 days following the end of the
fiscal year.
Cause: Due to changes in staffing, Friendship House Apartments, Inc. missed the 90 day remittance period.
Effect: Due to the above noted condition, Friendship House Apartments, Inc. was not in compliance with this
particular HUD compliance requirement.
Recommendation: Friendship House Apartments, Inc. should ensure that a timely deposit is made, as required by
HUD.
Views of Responsible Officials: Friendship House Apartments, Inc. agrees with the audit finding and has written a
correction action plan.