Finding 972373 (2023-001)

Finding 2023-001: Deposit of Surplus Cash into a Residual Receipts Account Department of Housing and urban Development (HUD) - AL #14.181 Supportive Housing for Persons with Disabilities - Capital Advance Questioned Costs: None Condition: Friendship House Apartments, Inc. had surplus cash of $19,279 on hand at September 30, 2022. Surplus cash was not remitted within 90 days of year end. Criteria: The Consolidated Audit Guide for Audits of HUD Programs and the compliance requirements for AL #14.181 state that any surplus cash as calculated under HUD guidelines in the project funds account at the end of the fiscal year be deposited in a federally insured residual receipts account within 90 days following the end of the fiscal year. Cause: Due to changes in staffing, Friendship House Apartments, Inc. missed the 90 day remittance period. Effect: Due to the above noted condition, Friendship House Apartments, Inc. was not in compliance with this particular HUD compliance requirement. Recommendation: Friendship House Apartments, Inc. should ensure that a timely deposit is made, as required by HUD. Views of Responsible Officials: Friendship House Apartments, Inc. agrees with the audit finding and has written a correction action plan.