FAC Explorer

Finding 58232 (2022-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-24
Audit: 49675
Organization: Upshur House (LA)
Auditor: Wharton CPA LLC

AI Summary

  • Core Issue: The Project failed to prepare a HUD 9250 and did not remit excess residual receipts, which is a requirement.
  • Impacted Requirements: Owners must remit excess balances over $250 per unit to HUD upon contract termination or renewal, as per the Consolidated Appropriations Act, 2017.
  • Recommended Follow-Up: The Property should prepare and submit the HUD 9250 to remit the excess funds of $11,000 to HUD.

Finding Text

2022-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: The allowable balance is $11,000 ($250 X 44 units), resulting in excess residual receipts. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.

Corrective Action Plan

2022-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: The allowable balance is $11,000 ($250 X 44 units), resulting in excess residual receipts. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD. Management Response: It is our understanding that the Board of Directors will be requesting a meeting with HUD to discuss the dissolution of this item. Upon meeting with HUD it will be discharged.

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 634674 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.50M
14.195 Section 8 Housing Assistance Payments Program $129,237