Finding 499511 (2023-001)

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Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: The Entity failed to keep residual receipts in an interest-bearing account.
  • Impacted Requirement: Compliance with the requirement to maintain interest-earning accounts for residual receipts.
  • Recommended Follow-Up: Contact the bank to fix the interest rate or transfer funds to an appropriate interest-bearing account.

Finding Text

Criteria The Entity is required to maintain residual receipts in an interest-bearing account. Condition The Entity’s residual receipts were not maintained in an interest-bearing account. Cause The interest rate on the account was changed by the bank, which was not noticed by management personnel before the year end. Context When performing our audit, we noted that the Entity’s residual receipts did not earn interest in 2023. Questioned Costs None Noted Effect The Entity was not in compliance with the requirement to maintain its residual receipts in an account that bears interest. Recommendation We recommend the Entity contact the bank to correct the interest rate on the account or move the balance to an interest-bearing account. Views of the Responsible Official See attached Corrective Action Plan.

Corrective Action Plan

Criteria The Entity is required to maintain residual receipts in an interest-bearing account. Condition The Entity’s residual receipts were not maintained in an interest-bearing account. Cause The interest rate on the account was changed by the bank, which was not noticed by management personnel before the year end. Context When performing out audit, we noted that the Entity's residual receipts did not earn interest in 2023. Questioned Costs none noted. Effect The Entity was not in compliance with the requirement to maintain its residual receipts in an account that bears interest. Recommendation We recommend the Entity contact the bank to correct the interest rate on the account or move the balance to an interest-bearing account. Views of the Responsible Official See Corrective Action Plan

Categories

Cash Management HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $790,851