Finding Text
DESCRIPTION OF FINDING: THE HUD REGULATORY AGREEMENT REQUIRES RESIDUAL RECEIPTS TO BE DEPOSITED INTO A SEPARATE INTEREST BEARING ACCOUNT WITHIN 60 DAYS AFTER THE END OF THE ANNUAL FISCAL YEAR. THIS DEPOSIT WAS NOT MADE WITHIN THE REQUIRED 60 DAYS. EFFECT: OUT OF COMPLIANCE WITH THE HUD REGULATORY AGREEMENT. RECOMMENDATIONS: WE RECOMMEND THAT THE ORGANIZATION COMPLETE A REVIEW OF THE PROPERTY RESTRICTED CASH ACCOUNTS ANNUALLY AND TO VERIFY REQUIRED TRANSFERS HAVE BEEN MADE. MANAGEMENT’S RESPONSE: DEPOSIT WAS MADE AS SOON AS THE ERROR WAS NOTED. ADDITIONALLY, ALL RESTRICTED ACCOUNTS WILL BE REVIEWED ANNUALLY TO ENSURE TRANSFERS ARE MADE.