Finding Text
S3800-010 Finding Reference Number: 2022-002 S3800-011 Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: Residual receipts balance at year end should be equal to the number of units multiplied by $250. After the overage is calculated, the Organization is to request approval for the withdrawal from HUD. After approval, this overage is to be withdrawn and used to pay the surplus cash note. S3800-030 Statement of Condition: Residual receipts balance is over the calculated compliance amount. S3800-032 Cause: The prior year surplus cash amount was deposited into the residual receipts account and was then given withdrawal approval by HUD. However, the approved amount was never withdrawn from the account to pay the residual receipts note. S3800-033 Effect: Residual receipts balance is over the compliance amount. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $14,449 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the residual receipts activity showed that the client had deposited surplus cash money into the account and obtained approval to use said money to pay the residual receipts note. However, at year end the money was never withdrawn from the account. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization did not move money from the residual receipts account in order to pay down surplus cash note despite receiving HUD approval. This led to the residual receipts account being greater than its compliance amount. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022