Finding Text
Failure to deposit Surplus Cash in the Residual Receipts Accounts Criteria: Pursuant to 24 CFR §891.400(e) "Use of project funds" any surplus cash following the expiration of the fiscal year shall be deposited in a residual receipts account within 60 days following the end of the fiscal year. Condition: The Organization failed to timely transfer the surplus cash to theresidual receipts account. Questioned Costs: Unknown. Context: Upon review of the residual receipts activity after year end the surplus cash was not transferred to the restricted residual receipts account in a timely manner. Effect: The Organization is not in compliance with the Capital Advance Program Regulatory Agreement and has been notified by HUD of the late filing.
Cause: The Organization did not have controls in place to identify HUD's reporting requirements. Recommendation: The Organization should implement controls to ensure future compliance and timely reporting of the unaudited financial statements. Identification of repeat finding: This is an ongoing finding.
Management's Response: Management concurs with the finding. See Corrective Action Plan.