Finding 497253 (2023-001)

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Requirement
C
Questioned Costs
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Year
2023
Accepted
2024-09-17

AI Summary

  • Core Issue: Residual receipts deposits of $9,326 due at year-end 2022 were not made in fiscal year 2023.
  • Impacted Requirements: Surplus cash must be deposited into the Residual Receipts account as per guidelines.
  • Recommended Follow-Up: Implement additional procedures during year-end close to ensure timely deposits of residual receipts.

Finding Text

2023-001Criteria: Surplus cash at fiscal year-end as calculated in the Computation of Surplus Cash is to be deposited into the Residual Receipts account during the subsequent fiscal year. Condition: Residual receipts deposits due at December 31, 2022 were not made during the 2023 fiscal year. Cause: Due to low liquidity at Swainsboro during fiscal year 2023, the residual receipt deposit was not made. During our testing of residual receipts, we noted deposits due at December 31, 2022 of $9,326 were not made during the 2023 fiscal year. Effect: The failure to deposit surplus cash during fiscal year 2023 resulted in an audit finding for the Organization. Recommendations: We recommend the Organization implement additional procedures during year-end close out procedures to ensure residual receipt deposits due at year-end are deposited in a timely manner. Views of Responsible Officials: Management agrees with the recommendations and to adhere to current internal control processes that are in place to ensure the Organization is in compliance with all requirements as it relates to their federal awards.

Corrective Action Plan

Recommendation: We recommend the Organization implement additional procedures during year-end close out procedures to ensure residual receipt deposits at year-end are deposited in a timely manner. Action Taken: To enhance the controls around residual receipt deposits during year-end close-out procedures, the Organization will implement a systematic action plan to ensure that residual receipt deposits are processed in a timely manner. The organization will implement a monitoring system that tracks the status of residual receipts and flags any deposits that are approaching or have passed their deadlines. Regular progress reviews will be scheduled to ensure that all residual receipts are processed promptly and any issues are addressed swiftly. Finally, a post-year-end audit will be conducted to evaluate the effectiveness of the new procedures, identify any areas for improvement, and refine the process for the following year. This action plan will ensure that residual receipt deposits are managed efficiently and contribute to the overall accuracy of the year-end financial statements.

Categories

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $1.25M
14.195 Section 8 Housing Assistance Payments Program $337,494