Finding 598347 (2022-002)

- Repeat Finding
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-05

AI Summary

  • Core Issue: $18,738 of surplus cash was not deposited into the residual receipts account within the required ninety days after the fiscal year-end.
  • Impacted Requirements: HUD guidelines mandate that surplus cash must be deposited within ninety days post-fiscal period.
  • Recommended Follow-Up: Ensure the $18,738 is deposited and improve procedures for timely calculation and transfer of surplus cash to the residual receipts account.

Finding Text

Finding 2022-002- Residual Receipt Deposits Federal Agency U. S. Department of Housing and Urban Development Pass through Entity Not applicable Program Name: Section 811 Capital Advance Program CFDA# and Program Expenditures: 14.181 ($1,616,600) Federal Award Year July1, 2021 to June 30, 2022 Questioned Costs $18,738 Condition Found The $18,738 of surplus cash at June 30, 2022 was not deposited into the residual receipts account within ninety days of the Project?s fiscal year-end. Criteria: According to HUD?s guidelines, a Project must deposit surplus cash due to residual receipts within ninety days after the fiscal period ends (REAC submission due date) Cause Project management did not transfer the surplus cash of $18,738 from the operating account to the residual receipts Effect: The Project held excess cash and did not make the required residual receipts deposits. Recommendation: The Project should make a deposit of $18,738 for the year ended June 30, 2022. Procedures should be improved to ensure that surplus cash is calculated and transferred to the residual receipt account timely. Management?s response Agrees with the recommendation

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.62M
14.195 Section 8 Housing Assistance Payments Program $106,061