Finding 554284 (2024-002)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-04-07
Audit: 352863
Organization: Hickory Lane One, INC (MD)

AI Summary

  • Core Issue: The Corporation failed to deposit required surplus cash into the Residual Receipts account as mandated by the Regulatory Agreement.
  • Impacted Requirements: The Residual Receipts account is underfunded and non-compliant due to missed deposits totaling $76,955.
  • Recommended Follow-Up: The Corporation should ensure the deposit of $76,955 into the Residual Receipts account to meet compliance requirements.

Finding Text

39 - 2024-2 14.157 Supportive housing for the elderly Federal Award Finding In process N/A N/A No The Regulatory Agreement requires surplus cash to be deposited to the Residual Receipt account when there is prior year surplus cash deposit due. The Corporation did not make the required deposit to the Residual Receipts account. Lack of cash flow due to lack of receipt of rental assistance payments. The Project's Residual Receipts account is underfunded and is not compliant with the Regulatory Agreement. N - Residual Receipts Deposits 052-EE035 $76,955 The Corporation, despite multiple efforts from management, did not receive the rental assistance payments from HUD during the year and thus did not have the cash flow to be able to make the deposits to the Residual Receipt account in the amount of $76,955. The Corporation should deposit $76,955 into the Residual Receipts account.

Corrective Action Plan

The Corporation, through various efforts of management, has begun to start receiving past due rental assistance payments from HUD and will make the required deposits as cash flow permits.

Categories

Questioned Costs HUD Housing Programs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $75,159