Finding Text
Schedule reference number 2023-001. Title and AL Number of Federal Program: Section 223(f) HUD insured project, CFDA 14.155 Type of finding: Federal Award Resolution status: In process Population size: NA Sample size: NA Repeat finding: No Criteria: Surplus cash should be funded to the residual receipts account within 60 days of year end. Statement of Condition: The Project had surplus cash amounting to $197,819 as of September 30, 2023. Cause: Management made a deposit on December 5, 2023 for $194,026, which was 5 days late. Additionally, the deposit was short due to the audit of the financial statements not being completed at that time. Effect or Potential Effect: Minimal lost interest. Auditor Noncompliance code: B. Questioned cost: N/A Reporting views of officials: Auditee agrees with the finding. Context: This was noted while performing certain procedures on surplus cash. Recommendation: Management should calculate surplus cash prior to the audit to ensure that the correct deposit is made to the residual receipts account in a timely manner. Auditors' summary of auditee's comments: They are in agreement. Completion date: September 30, 2024 Response: In the future, management will calculate surplus cash prior to the audit. Additionally, management will make the additional required deposit as soon as possible.