Finding 634677 (2022-001)

- Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2023-04-25

AI Summary

  • Core Issue: Surplus cash was not deposited into the residual receipts account within the required 90 days after year-end, violating the Regulatory Agreement.
  • Impacted Requirements: The failure to deposit the full amount from the 2021 surplus cash calculation has resulted in a potential violation and questioned costs of $1,370.
  • Recommended Follow-Up: Management should calculate surplus cash promptly to ensure timely deposits into the residual receipts account moving forward.

Finding Text

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 202 Capital Advance 14.157 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Unresolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2020-01 S3800-020 Criteria ? In accordance with the Regulatory Agreement, surplus cash is required to be deposited into a residual receipts account within 90 days of year-end. S3800-030 Statement of Condition ? Surplus cash was not deposited into a residual receipts account within 90 days of year-end. S3800-032 Cause ? Due to the low cash balance, management was not able to deposit the full amount required from the 2019 surplus cash calculation. S3800-033 Effect or Potential Effect ? The Project is in violation of the Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $1,370 S3800-045 Reporting Views of Responsible Officials ? During 2021 management deposited $2,755 in relation to the 2020 residual receipt deposit requirement, but due to the low cash balance was not able to deposit the required amount for 2022. S3800-050 Context ? Residual receipts deposit made in May 2022 is lower than the required amount. S3800-080 Recommendation ? Management should ensure surplus cash is calculated in a timely matter in order to make any required deposit to the residual receipts account. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Due to the low cash balance, management was not able to deposit the full amount required from the 2021 surplus cash calculation. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? N/A S3800-150 Response ? Management will deposit required amounts.

Categories

Questioned Costs Cash Management HUD Housing Programs Reporting

Other Findings in this Audit

  • 58235 2022-001
    - Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $29,395