Finding 479211 (2024-001)

Statement of Condition: The Corporation did not have adequate and effective controls over compliance relating to special tests and provisions requirements. The Corporation did not make the required deposit of surplus cash in the amount of $9,507 into the residual receipts account within the time frame established by the U.S. Department of Housing and Urban Development (HUD). Criteria: Uniform Guidance states that controls should be implemented to ensure the Corporation is in compliance with special tests and provisions. As stated in the regulatory agreement, HUD requires the Corporation to deposit surplus cash into the residual receipts account within 90 days of fiscal year-end. Questioned Costs: No questioned costs were identified. Context: The required surplus cash deposit, which is calculated on an annual basis, was not made in the HUD required time frame. Cause: Management has indicated they overlooked the due date of the required deposit. Effect: The Corporation was not in compliance with the HUD requirement to deposit surplus cash into the residual receipts account within 90 days of fiscal year end. The deposit was made in April 2024. Recommendation: We recommend management review their processes and controls surrounding the surplus cash deposit into the residual receipts account. Management's Response: Management agrees with the finding and will put processes and controls in place to verify timely deposit in the future.