Finding Text
Department of Housing and Urban Development Finding No. 2022-001; Federal Assistance Listing Number 14.134, Mortgage Insurance ? Rental Housing Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipt reserve deposit in the amount of $65,729 within 90 days of year end, as required by the regulatory agreement. The residual receipts amount was deposited on November 12, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context The error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B ? Failure to make required residual receipts deposits Views of Responsible Officials Management will review the property's surplus calculation closer to year end to determine if there is surplus cash, management will deposit funds into the residual receipts account in a timely manner.