Finding Text
Section 223(f) Loan Program, CFDA 14-157 Finding# 2022-001 Criteria: Pursuant to the Regulatory Agreement, any residual receipts realized from the operation of the Project shall be deposited into a separate residual receipts account within 90 days after year end. Statement of Condition: Residual receipts in the amount of $16,464 as of March 31, 2021, was not deposited into a separate residual receipts account within 90 days after year end. Cause: The Company had cash flow shortfalls after paying other operating expenses. Effect: The Company was not in compliance with the Regulatory Agreement relative to the required residual receipts deposits. Context: This was not a sampling audit procedure. Amount of Questioned Costs $-0- Recommendation: Make the deposit to the residual receipts account as required and ensure that all future residual receipts amounts are deposited within 90 days after year end. Auditor?s Non-Compliance Code: B - Owners must deposit residual receipts into a separate account within 90 days after year end. Reporting Views of Responsible Officials: The Company could not make the residual receipt deposit due to cash shortfalls. Auditor?s Summary of Auditee?s Comments on the Findings and Recommendations: Auditee agreed with auditor?s findings. Response Indicator Accepted Completion Date Open Response: Management has been waiting to receive prior months delinquent PRAC voucher requests and has been unable to make the residual receipts deposit. Contact Person David Cooper