Finding Text
Statement of condition 2022-001: The required deposit of $66,982, per the December 31, 2021 Computation of Surplus Cash, Distributions and Residual Receipts, was not deposited into the Residual Receipts Fund within 90 days of fiscal year end. Criteria: The Regulatory Agreement requires Surplus Cash, as defined by HUD, to be deposited into a separate Residual Receipts Fund within 90 days of fiscal year end. Effect: The Corporation was not in compliance with the Regulatory Agreement. Cause: Management did not make the required deposit to the Residual Receipts Fund within 90 days of fiscal year end based on the Computation of Surplus Cash, Distributions and Residual Receipts as of December 31, 2021. Recommendation: Management should monitor the Surplus Cash position and make required deposits to the Residual Receipts Fund within 90 days of fiscal year end. Management's response: Management concurs with the finding and agrees with the recommendation. Management deposited the $66,982 to the Residual Receipts Fund on May 13, 2022. No further action is required.