Finding 969388 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-10

AI Summary

  • Core Issue: The Corporation failed to deposit $19,539 into the residual receipts account within the required 90 days after the fiscal year end.
  • Impacted Requirements: This non-compliance violates the HUD Regulatory Agreement regarding surplus cash deposits.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts in the future to avoid similar issues; management has confirmed compliance as of November 30, 2023.

Finding Text

Assistance Listing title and number (federal award identification and year): Section 207 pursuant to Section 223(f) of the National Housing Act, Assistance Listing No. 14.134 (Project identification number 054-11075, year 2023) Auditor non-compliance code: B - Failure to make required residual receipt deposit. Finding resolution status: Resolved. Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $19,539 Statement of condition #2023-001 (Assistance Listing No. 14.134): The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD Regulatory Agreement, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal year end. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. Cause: Management oversight. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: November 30, 2023 Management Response: Agree. Management deposited $19,539 into the residual receipts fund on November 30, 2023. No further action is required.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Cash Management

Other Findings in this Audit

  • 392946 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $1.41M
14.195 Section 8 Housing Assistance Payments Program $340,864
14.191 Multifamily Housing Service Coordinators $81,193