Finding Text
S3800-010 Finding Reference Number: 2022-002 S3800-011 Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: Residual receipts balance at year end should be equal to the number of units multiplied by $250. After the overage is calculated, the Organization should request approval for the withdrawal from HUD. After approval, this overage is to be withdrawn and used to pay the excess in residual receipts. S3800-030 Statement of Condition: Residual receipts balance is over the calculated compliance amount. S3800-032 Cause: The prior year surplus cash amount was deposited into the residual receipts account. However, approval was not requested to pay back excess residual receipts. S3800-033 Effect: Residual receipts balance is over the compliance amount. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $7,625 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the residual receipts activity showed that the client had deposited surplus cash money into the account; however, approval was never sought to pay back excess residual receipts. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with of all residual receipts compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization did not obtain approval to pay back the excess residual receipts amount. This led to the residual receipts account being greater than its compliance amount. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will request approval to pay back excess residual receipts.