Finding Text
Criteria: The Organization is obligated to deposit any surplus cash available at year-end into the residual receipts account within 60 days of the fiscal year-end (August 30th). Condition: The Organization failed to deposit surplus cash for the fiscal year ended June 30, 2021 by August 30, 2021. Effect: The Organization is noncompliant with the requirements of the Section 207 Insured Mortgage for Supportive Housing for the Elderly program . Cause: The Organization used the surplus cash calculation included in the audited financial statements to determine the amount that needed to be deposited into the residual receipts account. The financial statements were issued 90 days after the fiscal year ended June 30, 2021. Repeat finding: This is not a repeat finding. Context: The deposit deadline for the fiscal year ended June 30, 2021 was August 30, 2021. The deposit was made on November 1, 2021. Recommendation: We recommend completing a surplus cash calculation as part of the year-end financial statement close process so that there is time to open a bank account if necessary and make the required surplus cash deposit within 60 days of fiscal year-end. Management response: Management agrees with this finding. See Corrective Action Plan.