Finding 503862 (2023-002)

Late Residual Receipt Payment Criteria: The regulations under which the Project operates require the Organization to make deposits based on their surplus cash calculation into their residual receipts account in accordance with HUD requirements within 90 days after the close of the fiscal year. Condition: During 2023, the Organization completed a late deposit to their residual receipts account in the amount of $2,243. Cause: The Organization was not reviewing their surplus cash on a regular basis, resulting in a late deposit. Effect: The Organization is not in compliance with HUD guidelines which require surplus cash to be deposited within 90 days after close of the fiscal year. Recommendation: We recommend the Organization monitor and regularly calculate surplus cash to ensure a timely deposit. Views of Responsible Officials: Management deposited the $2,243 into their residual receipts account on September 7, 2023. Management is working on developing a procedure to calculate surplus cash on a monthly basis to ensure surplus cash is deposited on a timely basis. This is expected to be completed during fiscal year 2024.