Finding Text
2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD Insured Mortgage Assistance Living Number: 14.129 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Compliance Criteria or Specific Requirement: Distributions are allowed to be made up to the amount of surplus cash based on a calculation at June 30 and December 31 annually. Condition: Management is responsible for reviewing the timing of the calculations the surplus cash distributions are made from to ensure the amount does not exceed the amount allowable. Questioned Costs: $79,072 Context: While performing audit procedures it was noted the distribution was based on the November surplus cash calculation and in excess of the amount available at June 30, 2022. Cause: The project distributed cash based on a November 30, 2022 surplus cash calculation in an amount more than the June 30 calculation. Effect: Cash distributed was more than the amount allowed Repeat Finding: No Recommendation: Recommend management review their policies to ensure distributions are made based on the biannual surplus cash calculations. Views of Responsible Officials: There is no disagreement with the audit finding.