Finding Text
Condition: The Organization failed to deposit surplus cash from 2021 of $15,814 into
residual receipts within 60 days of the fiscal period end.
Criteria: HUD-93486-ORCF states that any surplus cash non-profit projects have at
the end of the fiscal year "must be deposited with Mortgagee within 60 days
after Fiscal Period ends." During the prior year, the Project had surplus cash
in the amount of $15,814.
Effect: The residual receipts account is underfunded by $15,814 as of December 31,
2022.
Cause: Management failed to deposit the surplus cash in time due to the December
31, 2021, audit being completed later in the year on September 27, 2022.
Recommendation: We recommend the Organization deposit the funds into residual receipts as
soon as possible.
Auditee's Response: The Organization will deposit $15,814 of surplus cash into residual receipts
as soon as possible.