Finding Text
Criteria:Surplus cash calculated as of the end of the fiscal year is required to be deposited into the residual receipts account within 90 days following the end of the fiscal year. Condition: Surplus cash calculated in the amount of $5,966 as of October 31, 2022 was required to deposited by the management company within 90 days of the fiscal year end. Questioned Costs: $5,966 Cause: Management company failed to comply with the required surplus cash deposit during the fiscal year. Effect: The Project was not in full compliance with its Regulatory Agreement regarding surplus cash deposit into residual receipts account. Recommendation: Management should enhance its internal controls to ensure management company’s compliance with residual receipts account. Management Response: See Management's Corrective Action Plan on page 33.