Finding Text
Finding No. 2022-001 - Residual Receipts Account 31 CONDITION: The Corporation failed to make the required deposit to the residual receipts account with 60 days following year end. CRITERIA: Any project funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insurance account within 60 days following year end. QUESTIONED COSTS: The amount of questioned costs could not be determined. CONTEXT: The cash surplus computed for the year ended June 30, 2021 was not deposited until January 28, 2022, outside of the 60-day window. CAUSE: The overall cause was a lack of effective management oversight and quality control over this program. RECOMMENDATION: The Corporation should compute the surplus cash within 60 days of year end, and if there is a surplus, deposit that amount into the residual receipts reserve in accordance with HUD guidelines.