Finding Text
2022-001 Timely Deposit of Surplus Cash U.S. Department of Housing and Urban Development Federal Assistance Listing 14.181 ? Supportive Housing for Persons with Disabilities Criteria: HUD Handbook 4370.2, Financial Operations and Accounting Procedures for Insured Multifamily Projects, states that the regulatory agreement required that all surplus cash available at the end of the annual fiscal period to be deposited in the residual receipts account within 60 days after the end of the fiscal year. Condition: Prior year surplus cash was not deposited into the residual receipts account on a timely basis. Questioned Costs: $0 Cause: Crowhaven Apartments, Inc. was aware of the requirement but management oversight resulted in the failure to separately deposit these funds. Effect: Surplus cash deposits into the residual receipts account were delinquent in accordance with HUD requirements. Recommendation: We recommend Crowhaven Apartments, Inc. establish procedures to ensure that required deposits of surplus cash are made on a timely basis after the fiscal year end. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and is in the process of incorporating procedures to ensure that all required surplus cash deposits are made timely. The required deposit was made February 2022.