Finding Text
S3800-010 - Finding Reference Number: 2022-001 S3800-011 - Title and FAN Number: Section 220 HUD 221 (d)(4) Multi Family Housing Loan FAN #14.135 S3800-015 - Type of Finding: Federal Awards Finding S3800-016 - Resolution: In process S3800-017 - Population: 100% of surplus cash required to be deposited into residual receipts reserved. S3800-018 - Sample Size: 100% of surplus cash required to be deposited into residual receipts reserved. S3800-019 - Repeat Finding: This is a repeat finding refer to prior year finding 2021-001. S3800-020 - Criteria: In accordance with the HUD regulatory agreement, Surplus Cash at the end of the year is required to be deposited into the Residual Receipts Reserve within 60 days after the end of the year. S3800-030 - Statement of Condition: Surplus cash as of December 31, 2021 was $88,846 of which only $40,000 was deposited into Residual Receipts Reserve account on July 11, 2022. S3800-032 - Cause: The property has experienced significant vacancies that have negatively affected its cash flow. S3800-033 - Effect: Management plans to resolve the matter with its HUD representative. The amount of lost interest income is very insignificant. S3800-035 - Auditor Non-Response Compliance Code: B-Failure to make required Residual Receipts Deposit. S3800-040 - Questioned Costs: None S3800-045 - Reporting Views of Responsible Officials: We agree with the finding and will take immediate action to resolve the matter with our HUD representative. We will closely monitor surplus cash calculations to assure deposits to the residual receipts reserve account are made in a timely manner and have assigned an individual to take responsibility. S3800-050 - Context: Management had made residual receipts deposits in all years prior to 2021 in a timely manner. S3800-080 - Recommendation: We recommend Management resolve this matter with its HUD representative and closely monitor surplus cash calculations to assure deposits to the residual receipts reserve account are made in a timely manner and that an individual be assigned that responsibility. S3800-090 ? Auditor?s Summary of the Auditee?s Comments on findings and Recommendations: We agree with the Auditee?s comments. S3800-130 - Response Indicator: Agree S3800-140 - Completion Date: June 30, 2023 S3800-150 - Response: We agree with Management?s response.