Finding Text
Criteria:
In accordance with regulatory agreements under the HUD Consolidated Audit Guide, residual receipts from the operation should be deposited to the residual receipts reserve account within 90 days from the year-end.
Condition:
The Project did not deposit the residual receipts from fiscal year 2023 into the reserve account.
Effect:
Advanced Living Inc.’s Schwenckfeld Manor may lose its federal assistance if does not comply with the deposit requirements under regulatory agreements.
Cause:
Management of Advanced Living Inc.’s Schwenckfeld Manor did not monitor the timely deposit of residual receipts.
Questioned Costs:
The Project had the residual receipts of $204,886 as calculated on the audited financial statements for the year ended June 30, 2023.
Recommendation:
The Project should more closely monitor its timely deposit of residual receipts as required by the regulatory agreement.
Management's Response:
Management had asked HUD for guidance in this matter during September of the fiscal year, but it was not officially addressed. Management made the same request this year and HUD is looking into the possibility of using the residual receipts to pay the owner advance off. As of today, management has not received definitive guidance. Management will follow the recommendation received from HUD and deposit the residual receipts with HUD.