Finding Text
Condition: The project?s surplus cash was not deposited in the residual receipts account within 60 days after year end. Criteria: Any project funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited with the mortgage or other HUD-approved depository in an interest-bearing account. Effect: The project was not in compliance Questioned Costs: None Cause: Due to turnover in the HUD manager position, this requirement was inadvertently missed for the fiscal year. Recommendation: Management should perform the calculation of surplus cash during the year end closing process and transfer any surplus cash to the residual receipts account if necessary. Current Status: Management agrees with the comment and have transferred the funds in February 2023.