Finding Text
Finding 2022-001 United States Department of Housing and Urban Development (HUD) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Program ALN 14.155 Special Tests and Provisions Condition: PCM Senior Housing, Inc. d/b/a Shady Park Place (Property) surplus cash calculation for the year ended December 31, 2021 resulted in a deposit due to the residual receipts account within 90 days following year end. The Property did not have controls in place to ensure the required surplus cash deposit was made within the required timeframe. Criteria: Internal controls must ensure that surplus cash be deposited in the residual receipts account within 90 days following year-end as required by HUD. Cause: The Property did not have internal controls in place to ensure the required surplus cash deposit was made within the required timeframe. Effect: As a result of the funds not being deposited, the residual receipts account was not adequately funded as of December 31, 2022. Questioned Costs: N/A Recommendation: Procedures should be implemented to ensure the Property makes the required deposits to its residual receipts account within the 90 days following year end. Views of Responsible Officials: Management agrees with the finding; see separate Corrective Action Plan.