Finding 519898 (2023-001)

Condition: The $26,447 of surplus cash at June 30, 2023 was not deposited into the residual receipts account within ninety days. Criteria: According to HUD’s guidelines, a Project must deposit surplus cash due to residual receipts within ninety days after the fiscal period ends (REAC submission due date) Cause Project management did not transfer the surplus cash of $26,447 from the operating account to the residual receipts account. Effect: The Project held excess cash and did not make the required residual receipts deposits. This has been a finding for the last four years. Recommendation: Surplus cash was recalculated at the end of June 30, 2023. The Project should make a deposit of $26,447 for the year ended June 30, 2023. Procedures should be improved to ensure that surplus cash is calculated and transferred to the residual receipt account timely.