Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Supportive Housing for Persons with Disabilities
Assistance Listing Number: 14.181
Award Period: July 1, 2023 to June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Per HUD requirements Surplus Cash calculated in the prior year must be deposited into a separate residual receipts account within 60 days of year end.
Condition: During our testing, we noted that ORE failed to make the required deposit of surplus cash that was calculated in the 2023 audited financial statements.
Questioned costs: None
Context: During our testing we noted that there had been no deposits made into the residual receipts account.
Cause: Surplus cash was not calculated or remitted within 60 days due to oversight.
Effect: The residual receipts account is not in compliance with HUD Residual Receipts Provisions and is underfunded.
Repeat Finding: No
Recommendation: We recommend the ORE design controls to document the deposit of surplus cash when required. We also recommend the surplus cash amount of $47,003, calculated at 6/30/24 year end be deposited immediately
Views of responsible officials: There is no disagreement with the audit finding.