Finding 556081 (2024-001)

Finding 2024-001 Criteria: The Organization is obligated to deposit any surplus cash available at year-end into the residual receipts account within 90 days of the fiscal year-end (March 30th). Condition: The Organization failed to deposit surplus cash for the fiscal year ended December 31, 2023 within 90 days of year-end. Effect: The Organization is noncompliant with the requirements of the Section 202 Supportive Housing for the Elderly program. Cause: The Organization used the surplus cash calculation included in the audited financial statements to determine the amount that needed to be deposited into the residual receipts account. The financial statements were issued 90 days after the fiscal year ended December 31, 2023. Repeat finding: This is not a repeat finding. Context: The deposit deadline for the fiscal year ended December 31, 2023 was March 30, 2024. The deposit was made on April 3, 2024. Recommendation: We recommend completing a surplus cash calculation as part of the year-end financial statement close process so that there is time to make the required surplus cash deposit within 90 days of fiscal year-end. Management response: Management agrees with this finding. See Corrective Action Plan.