Finding Text
Information on the Universe Population Size-One (1) surplus cash deposit Sample Size-One (1) surplus cash deposit Identification of Repeat Finding Reference Number-N/A Criteria-The regulatory agreement requires surplus cash payments to be deposited in the residual receipts reserve within 90 days of the fiscal year end Statement of Condition-The 2022 required surplus cash deposit of $22,035 was not made with 90 days of the fiscal year end Cause-The reason the deposit was not made is due to management oversight due to a change in management personnel positions Effect or Potential Effect-The requirement to deposit surplus cash within 90 days of the fiscal year was not met Auditor Non-Compliance Code- B-Failure to make required residual receipts deposits Questioned Costs-There were no known questioned costs Reporting Views of Responsible Officials-The Entity’s policy has been to make surplus cash deposits after the final audit has been issued Going forward the focus will be to work with the auditor and owner to get the audits finalized earlier so adequate time is left for the deposits to be made. In instances where the final is not going to be issued and allow enough time, the deposit will be made based on the reviewed draft FHA Contract number- 000-HH005/CMI Context-The finding represents an isolated instance of management oversight due to a change in management personnel positions Recommendations-We recommend that management ensures the surplus cash deposit is done timely in the future or request a waiver from HUD Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations-Management agrees with the finding and has made the required surplus cash deposit to the residual receipts account and has established a system in order to prevent any untimely surplus cash deposits going forward Response-Management agrees with the finding and has made the required surplus cash deposit to the residual receipts account and has established a system in order to prevent any untimely surplus cash deposits going forward