Finding Text
Condition - The residual receipts account was not maintained by management and is underfunded by $7,142 at September 30, 2023.
Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157 - Supportive Housing for the Elderly, non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make required deposits into the account within 90 days after the close of the fiscal year.
Effect - The Company was not in compliance with the above HUD regulations.
Cause - The residual receipts account was closed by the bank due to non-activity and the funds were sent to New York State.
Recommendation - We recommend that a residual receipts account be re-opened and the delinquent deposit of $7,142 at September 30, 2023 be deposited into the residual receipts account as soon as possible.
Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken.
(b) Action taken: Management is in process of reopening the residual receipts account and reclaiming the underfunded amount of $7,142 from New York State.