Finding Text
Supporting Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (HUD) Project No. 084-HD064 Program Year 2021 Criteria or Specific Requirement ? Special Tests and Provisions: Residual Receipts Account (24 CFR 891.400(e)) Condition ? The required annual deposit to the residual receipts account was not made within 60 days following year-end. Questioned Costs ? None Context ? The Project is required to calculate surplus cash at the end of each fiscal year and any amount greater than zero is required to be deposited to a federally insured residual receipts account within 60 days of year-end. The Project properly calculated surplus cash; however, funds were not deposited into a residual receipts account within the required time frame. Effect ? The Project did not comply with the residual receipts compliance requirement. Cause ? Fiscal year 2021 was the first year in which the Project has surplus cash that was required to be deposited to the residual receipts account and the Project was in the process of changing responsible parties. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Management should create policies and procedures for future instances of surplus cash that will ensure compliance with this requirement. View of Responsible Officials and Planned Corrective Actions ? Surplus cash is calculated on a monthly basis. All residual receipts are required to be deposited in a separate federally insured account within 60 days of the fiscal year-end. Burrell Housing Springfield deposited cash surplus into a residual receipts account for fiscal year-end June 31, 2021, however the funds were not deposited until after the 60-day deadline. Written instructions are included on the surplus cash calculation spreadsheet to ensure compliance. Responsible party is now Cris Desjardins, Senior Accountant.