Finding Text
Finding 2022-002: Failure to deposit Surplus Cash in the Residual Receipts Accounts Identification of Federal Program: Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Assistance Listing# 14.181); Criteria: Pursuant to 24 CFR ?891.400(e) "Use of project funds" any surplus cash following the expiration of the fiscal year shall be deposited in a residual receipts account within 60 days following the end of the fiscal year. Condition: The Organization failed to timely transfer the surplus cash to the residual receipts account. Questioned Costs: Unknown. Context: Upon review of the residual receipts activity after year end the surplus cash was not transferred to the restricted residual receipts account in a timely manner. Effect: The Organization is not in compliance with HUD-9839-B, paragraph 4(g). Cause: The Organization did not have controls in place to identify the requirements of transferring surplus cash in a timely manner. Recommendation: The Organization should immediately transfer the required amounts of surplus cash to the residual receipts account and implement controls to ensure future compliance. Identification of repeat finding: This is an ongoing finding. Management's Response: Management concurs with the finding. See Corrective Action Plan.