Finding 8321 (2023-001)

Statement of Condition: Surplus cash as of June 30, 2022 was not deposited into the Project's residual receipts account within 90 days after year end. Criteria: The Regulatory Agreement requires that the surplus cash be deposited into the Project's residual receipts account within 90 days of year end. Effect: Noncompliance with HUD regulations. Cause: Management oversight. Context: A test to verify that the surplus cash as of June 30, 2022 was deposited into the residual receipts account within 90 days of year end was performed. The deposit was not made during the year ended June 30, 2023. Questioned Costs: N/A Recommendation: We recommend that management review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. View's of Responsible Officials and Corrective Action Plan: Management acknowledges that the June 30, 2022 surplus cash was not deposited into the residual receipts account within 90 days of year-end and will provide additional oversight to ensure that the residual receipts deposit is made per regulatory guidelines.