Finding 6888 (2023-002)

Condition: The Project did not comply with HUD’s timeline requirements for surplus cash deposits to the residual receipts account. Criteria: Projects are required to ensure that surplus cash is deposited to the residual receipts account within 90 days after the fiscal year end, in accordance with the terms of the regulatory agreement between the Project and HUD. Context: Surplus cash must be deposited to residual receipts within 90 days of the fiscal year end. Cause: Due to untimely filings of annual financial statements and turnover in personnel, surplus cash calculations were not completed timely, causing surplus cash deposits to the residual receipts account to be delayed as well. Effect: Untimely deposits of surplus cash to the residual receipts account. Identification as a Repeat Finding: N/A Recommendation: The Project should implement policies and procedures to ensure that deposits to the residual receipts account are done in a timely manner. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. As of the date of these financial statements, this finding has already been corrected.