Core Issue: The organization failed to deposit surplus cash into the required residual receipts account on time.
Impacted Requirements: Compliance with HUD's mandate for annual deposits within 90 days when surplus cash exists.
Recommended Follow-up: Assign a responsible person for timely deposits and establish a review process to ensure compliance.
Finding Text
Federal agency: U.S. Department of Housing and Urban Development
Federal program title: Supportive Housing for the Elderly Section 202
Assistance Listing Number: 14.157
Award Period: Loan with Continuing Compliance
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Organizations are required to deposit surplus cash into the residual receipts account within the timeframe set by HUD.
Condition: Surplus cash was not deposited into the residual receipts reserve within the timeframe required by HUD.
Questioned costs: None
Context: A deposit is required once annually with 90 days when surplus cash exists from the previous year.
Cause: There was insufficient monitoring and review of surplus cash.
Effect: The organization is out of compliance with the HUD requirement.
Repeat Finding: No
Recommendation: We recommend the organization designate a person responsible to make sure deposits are made timely, and to establish a reviewer over this process to ensure compliance.
Views of responsible officials: There is no disagreement with the audit finding. See management-provided corrective action plan.
Categories
HUD Housing ProgramsSubrecipient MonitoringCash ManagementSignificant DeficiencyInternal Control / Segregation of DutiesMatching / Level of Effort / Earmarking