Finding 616029 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-04-27

AI Summary

  • Core Issue: The required deposit of $15,276 was not made into the residual receipts fund within the 90-day deadline after the fiscal year end.
  • Impacted Requirements: This failure violates the Regulatory Agreement, which mandates timely deposits of Surplus Cash as defined by HUD.
  • Recommended Follow-Up: Management should ensure ongoing monitoring of Surplus Cash to meet future deposit deadlines; the recent deposit was made on May 31, 2022, resolving the issue.

Finding Text

Statement of condition #2022-002: The required deposit of $15,276, per the July 31, 2021 Computation of Surplus Cash, Distributions and Residual Receipts, was not deposited into the residual receipts fund within 90 days of fiscal year end. Criteria: The Regulatory Agreement requires Surplus Cash, as defined by HUD, to be deposited into a separate residual receipts fund within 90 days of the fiscal year end. Effect: The Corporation was not in compliance with the Regulatory Agreement. Cause: Management did not make the required deposit to the residual receipts fund within 90 days of fiscal year end based on the Computation of Surplus Cash, Distributions and Residual Receipts as of July 31, 2021. Recommendation: Management should monitor the Surplus Cash position and make required deposits to the residual receipts fund within 90 days of fiscal year end. Completion date: May 31, 2022 Management's response: Management concurs with the finding and agrees with the recommendation. Management deposited the $15,276 to the residual receipts fund on May 31, 2022. No further action is required.

Categories

Questioned Costs HUD Housing Programs Cash Management

Other Findings in this Audit

  • 39586 2022-001
    Significant Deficiency Repeat
  • 39587 2022-002
    Significant Deficiency
  • 616028 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.10M
14.195 Section 8 Housing Assistance Payments Program $291,454