Finding Text
Finding No. 2022-002; Section 202 Supportive Housing for the Elderly, Assistance Listing 14.157 Criteria Residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2021, management did not make the required residual receipts reserve deposit in the amount of $4,273 within 90 days of year end, as required by HUD. The residual receipts amount was deposited on August 31, 2022. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Company is not in compliance with the requirements of the regulatory agreement. Questioned Costs $4,273. Identification as a Repeat Finding This is not a repeat finding. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Finding Resolution Status: Resolved. Views of Responsible Officials The residual receipts deposit was not made timely due to a turnover in staff. Management has trained all accounting staff on this process and the controller has implemented tracking procedures to ensure timely deposits.