Finding 755237 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-02-15

AI Summary

  • Core Issue: A required deposit of $17,227 to the residual receipts account was not made within the 60-day deadline due to staff absences.
  • Impacted Requirements: Compliance with GAGAS and Uniform Guidance regarding timely deposits to the residual receipts account.
  • Recommended Follow-Up: Implement notifications and calendar reminders for key personnel to ensure future compliance with deposit deadlines.

Finding Text

SCHEDULE OF FINDINGS, QUESTIONED COSTS AND RECOMMENDATIONS For the year ended March 31, 2022 FINDINGS AND QUESTIONED COSTS The audit did disclose one instance of noncompliance that is required to be reported according to GAGAS and Uniform Guidance. 2022-001 14.195 Section 8 Project Based Criteria: A deposit to the residual receipts account is required within 60 days of the FYE. Condition: The required deposit to the residual receipts account for $17,227 was not made. Cause: The project accountant was on medical leave at the time that the email containing the residual receipts deposit information was sent. Other managers were out with COVID at that time also. Effect: The $17,227 that should have been deposited to residual receipts remained in the project?s operating account. Perspective: This was a one time event. The project accountant being out on medical leave coinciding with other management being absent with COVID does not occur regularly. Recommendations: Notification of the residual deposit amount will be sent to the property accountant, the executive officer, and the supervising manager in the future. A reminder to make the residual receipts deposit will be added to the project accountant?s calendar. Management Comments: The Management agrees with the finding. The reminder will be added to the calendar. Management agrees that a notification will be sent to the project accountant, the executive officer, and the supervising manager. Resolution: The project accountant issued a check for $17,227 for the residual receipts deposit upon notification of the finding. Corrective Action Completed.

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.138 Mortgage Insurance_rental Housing for the Elderly $1.13M
14.195 Section 8 Housing Assistance Payments Program $428,340