Finding Text
Finding No. 2022-001 ? Timely Deposit of Surplus Cash Federal Assistance Listing Number 14.181 Name of Federal Program or Cluster Supportive Housing for Persons with Disabilities Information on the Universe Population Size One (1) surplus cash deposit. Sample Size Information One (1) surplus cash deposit. Identification of Repeat Finding Reference Number Not a repeat finding Criteria The regulatory agreement requires surplus cash payments to be deposited in the residual receipts reserve within 90 days of the fiscal year end. Statement of Condition The 2021 required surplus cash deposit of $13,032 was not made. Cause The deposit was not made is due to management oversight. Effect or Potential Effect The requirement to deposit surplus cash within 90 days of the fiscal year end was not met. Auditor Non-Compliance Code B ? Failure to make required residual receipts deposits Questioned Costs There were no known questioned costs. Reporting Views of Responsible Officials Our policy has been to make surplus cash deposits after the final audit has been issued. Going forward our focus will be to work with the auditor and owner to get the audits finalized earlier so adequate time is left for the deposits to be made. In instances where the final audit is not going to be issued and allow enough time, the deposit will be made based on the reviewed draft. FHA/Contract Number 012-HD086 Questioned Costs $0 Context The finding represents an instance of management oversight due to a change in management personnel positions. Recommendations We recommend that management ensure the surplus cash deposit is done timely in the future or request a waiver from HUD. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Management agrees with the finding and is in the process of obtaining a waiver from HUD or depositing the required surplus cash if a waiver is not granted. Response Indicator Agree Completion Date June 30, 2023 Response Management agrees with the finding and will make the surplus cash deposit as soon as funds are available or work with HUD to receive a waiver.