Finding 480251 (2023-001)

FINDING NO. 2023-001: Section 8 Housing Assistance Payments, ALN 14.195 Condition: Surplus cash of $33,367 existing at July 31, 2021 was not deposited into the residual receipts reserve during the year ended July 31, 2023. Criteria: Surplus cash at the end of each fiscal reporting period is to be subsequently deposited into the residual receipts reserve. Effect: Noncompliance with the regulatory agreement Context: N/A Cause: Operational personnel were unaware that the transfer was necessary. Recommendation: Management should arrange to transfer the amount due to the residual receipts account as soon as possible. Operational personnel should be educated about required residual receipts deposits. Views of Responsible Officials and Planned Corrective Actions: Management agrees that the amount needs to be transferred and plans to do so subsequent to year-end or to obtain HUD’s approval for a waiver based upon insufficient operating cash.