Finding 616100 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-07-20

AI Summary

  • Core Issue: The required deposit of $66,982 was not made to the Residual Receipts Fund within the 90-day deadline after fiscal year end.
  • Impacted Requirements: This failure means the Corporation was not in compliance with the Regulatory Agreement set by HUD.
  • Recommended Follow-Up: Management should ensure timely monitoring and deposits of Surplus Cash to avoid future compliance issues.

Finding Text

Statement of condition 2022-001: The required deposit of $66,982, per the December 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 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 December 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. Management's response: Management concurs with the finding and agrees with the recommendation. Management deposited the $66,982 to the Residual Receipts Fund on May 13, 2022. No further action is required.

Categories

Questioned Costs HUD Housing Programs Cash Management

Other Findings in this Audit

  • 39658 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.84M
14.195 Section 8 Housing Assistance Payments Program $313,479