Finding Text
Finding 2023-001:
Federal Awards Major Program
Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) (CFDA# 14.155)
Residual Receipts
Finding Resolution Status:
Resolved
Questioned Costs:
$31,573
Information on Universe and Population Size:
Not Applicable
Sample Size Information:
Not Applicable
Noncompliance Information:
The Project did not deposit their residual receipts deposit of $31,573 from prior year surplus cash within the required deadline of 90 days after year end.
Statement of Condition:
The Project did not deposit their required residual receipts deposit of $31,573 within the required deadline.
Criteria:
Any Surplus Cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 90 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR sections 891.400(e) and 891.600(e)).
Cause:
The project did not have a process in place to ensure residual receipts were deposited within 90 days.
Effect or Potential Effect:
The surplus cash was not deposited into the residual receipts account within 90 days.
Auditor Non-Compliance Code:
B - Failure to make required residual receipts deposits
Recommendations:
The Project should ensure that all required deposits to residual receipts are deposited within 90 days.
Reporting Views of Responsible Officials:
Management concurs with this finding, agrees with the auditor recommendation, and has made the required residual receipts deposit.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations:
Management concured, agreed and deposited the required residual receipts amount.
Completion Date:
March 28, 2024
Response:
Management concurs with this finding, agrees with the auditor recommendation, and has made the required residual receipts deposit.
Actions Taken or Planned on the Finding:
The funds have been deposited to residual receipts.
Contact Person:
Moshe Eichler