Finding Text
Criteria: The Organization is obligated to deposit any surplus cash available at yearend
into the residual receipts account within 60 days of the fiscal year-end
(August 30th).
Condition: The Organization failed to deposit surplus cash for the fiscal year ended
June 30, 2022 by August 30, 2022.
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 June 30, 2022.
Repeat finding: This is a repeat finding.
Context: The deposit deadline for the fiscal year ended June 30, 2022 was August 30,
2022. The deposit was made on September 19, 2022.
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 60 days of fiscal year-end.
Management response: Management agrees with this finding. See Corrective Action Plan.