Finding Text
Section III - Federal Award Findings and Questioned Costs Finding Number: 2022-001 Information on Universe and Population Size: N/A Sample Size Information: N/A Questioned Costs: None. Condition: The residual receipts deposit required in fiscal year 2019 has not been made. Criteria: The Corporation is required to deposit surplus cash into a residual receipts account. Cause: The project had insufficient cash in 2019, 2020, 2021, and 2022 to make the required deposit. During 2022, management consulted with HUD for a resolution. No resolution was obtained prior to June 30, 2022. Effect: The residual receipts account is underfunded by $38,308. Repeat Finding: Yes, reported as 2019-001 for the year ended June 30, 2019, as 2020-001 for the year ended June 30, 2020, and as 2021-001 for the year ended June 30, 2021. Recommendation: We recommend that management consult with their HUD representative for a remedy or make the required deposit. Reporting Views of Responsible Officials: We have contacted our HUD representative and we are working on an acceptable solution.