Finding Text
2022 ? 001 Type of Finding: Significant Deficiency in Internal Control over Compliance Federal Agency: Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: 067-EE078; 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: ? Other Matters Criteria or specific requirement: Surplus cash must be calculated and deposited, as defined in the Regulatory Agreement, and deposited into the residual receipts escrow within the 90 days after year end. Condition: The Project did not deposit surplus cash into the residual receipt escrow within the 90 days after year end requirement. Questioned costs: $43,292 Context: During the audit, it was determined that the Project?s surplus cash from fiscal year 2021 was not deposited into a residual receipts escrow account within 90 day requirement. Cause: Management oversight. Effect: Surplus cash was not deposited into the residual receipts escrow account within 90 days after year end requirement.Repeat Finding: No Recommendation: : We recommend that management compute surplus cash on an annual basis and make the deposit within 90 days after year end, as required by the Regulatory Agreement. Views of responsible officials: : Management originally did not remit surplus cash within the 90-day requirement due to the Project not having a finalized calculation of surplus cash until the financial statement audit as completed. The Project remitted the funds top the residual receipt escrow account during November 2021.