Finding 976951 (2023-002)

-
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2024-06-10
Audit: 308500
Organization: Meds Apartments (IL)

AI Summary

  • Core Issue: The required deposit of $13,422 to the residual receipts account was late, made on December 13, 2022, instead of by September 30, 2022.
  • Impacted Requirements: This delay violates the Regulatory Agreement, which mandates deposits within 90 days after year-end.
  • Recommended Follow-Up: Ensure all surplus cash is deposited on time in the future, ideally before September 30th.

Finding Text

Statement of Condition: The required deposit to the residual receipts account was not made within 90 days after year end. Based on the June 30, 2022 surplus cash calculation, a deposit of $13,422 should have been made by September 30, 2022. The deposit was not made until December 13, 2022. Criteria: The Regulatory Agreement requires all surplus cash from the prior year audit to be deposited to the residual receipts account within 90 days after year end. Effect or Potential Effect: Noncompliance with the Regulatory Agreement. Cause: Procedures in place were not adequate to ensure the timely deposit of the required surplus cash to the residual receipts account. Recommendation: Surplus cash (if any) should be deposited to the residual receipts account before September 30th. Reporting Views of Responsible Official: We concur with Finding 2023-2. The Corporation has implemented procedures to ensure the timely deposit of surplus cash to the residual receipts account. Status: Closed.

Categories

Questioned Costs Cash Management HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.50M
14.850 Public and Indian Housing $1.22M