Finding Text
Criteria: The Organization is obligated to deposit any surplus cash available at year-end into the residual
receipts account within 60 days of the fiscal year-end (August 30th).
Condition: The Organization failed to deposit surplus cash for the fiscal year ended June 30, 2022 by
August 30, 2022.
Effect: The Organization is noncompliant with the requirements of the Section 202 Supportive Housing for
the Elderly program.
Cause: The Organization used the surplus cash calculation included in the audited financial statements to
determine the amount that needed to be deposited into the residual receipts account. The financial statements
were issued 90 days after the fiscal year ended June 30, 2022.
Repeat finding: This is a repeat finding.
Context: The deposit deadline for the fiscal year ended June 30, 2022, was August 30, 2022. The deposit
was made on September 19, 2022.
Recommendation: We recommend completing a surplus cash calculation as part of the year-end financial
statement close process so that there is time to open a bank account if necessary and make the required
surplus cash deposit within 60 days of fiscal year-end.
Management response: Management agrees with this finding. See Corrective Action Plan.