Finding 624516 (2022-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-24
Audit: 52789
Organization: S.g. Noble Garden of Hope (LA)
Auditor: Wharton CPA LLC

AI Summary

  • Issue: The Project failed to prepare a HUD 9250 to remit excess residual receipts, totaling $30,133.
  • Requirements: Owners must remit excess balances over $250 per unit to HUD, as per the Consolidated Appropriations Act, 2017.
  • Follow-up: Prepare and submit the HUD 9250 to remit the excess funds of $22,883 to HUD.

Finding Text

2022-2 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: Residual receipts balance is $30,133 as of December 31, 2022. The allowable balance is $7,250 ($250 X 29 units), resulting in excess residual receipts of $22,883. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 48073 2022-001
    Material Weakness
  • 48074 2022-002
    Material Weakness Repeat
  • 624515 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.67M
14.195 Section 8 Housing Assistance Payments Program $125,345