Finding Text
Department of Housing and Urban Development
Finding 2023-001
Questioned Costs: $20,679
Information on Universe and Population Size: The population consists of the deposit due to the residual receipts reserve.
Sample Size Information: Sampling does not apply. All deposits were tested; 100% of the population was tested.
Noncompliance Information: During the year ended December 31, 2023, the Project did not make the required deposit to the residual receipts reserve within 90 days after year-end.
Condition: The Project did not make the required deposit to the residual receipts reserve timely.
Criteria: HUD regulations require the required deposit to the residual receipts reserve be made within 90 days of year-end.
Cause: Management had originally intended to request approval from HUD to waive the required residual receipts deposit. Management ultimately decided not to make this request of HUD.
Effect or Potential Effect: The residual receipts reserve was underfunded.
Recommendations: The Project should deposit the required amount of $20,679 into the residual receipts reserve. Future required residual receipts deposits should be made timely.
Management Comments: Management agrees with the finding and recommendations. The required deposit in the amount of $20,679 was deposited into the residual receipts reserve on February 20, 2024. Future required residual receipts deposits will be made timely.
Auditor Non-compliance Code: B - Failure to make required Residual Receipts deposit.
Status: Cleared