Finding Text
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 US Department of Housing and Urban Development Section 207/223(f) Mortgage Insurance Program Principal, CFDA 14.134. Criteria: The Regulatory Agreement with HUD states that Surplus Cash is to be deposited into the Residual Receipts account within 90 days of the fiscal year end. Condition: The required deposit of $2,234, per the December 31, 2021 Computation of Surplus Cash was not deposited into the Residual Receipts account in a timely manner. Cause: Managing Agent was unaware that compliance requirement was not being met as the intention was to offset HAP vouchers instead of making the deposit. Effect: Noncompliance with any part of the regulatory agreement may cause HUD to terminate assistance to the property. Perspective Information: This finding represents an isolated incident of management oversight of compliance requirements. Recommendation: We recommend that management implements a checklist of all compliance requirements, with applicable deadlines, that would be reviewed by appropriate individuals regularly, to ensure requirements are being met in a timely manner. Views of Responsible Officials: Management agrees with the finding and the auditor's recommendation. The required deposit was made on April 7, 2023. No further action required.