Finding 2024-002
significant deficiencyquestioned costsother matters
- Program
- SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM (14.195)
- Compliance requirement
- Other
- Questioned costs
- $1,214 (known)
- FAC record
- FY2024 audit on fac.gov
Finding text from the filing
2024-002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Project-Based Rental Assistance (PBRA)
Assistance Listing Number: 14.195
Award Period: 7/1/2023-6/30/2024
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or Specific Requirement: Surplus cash must be calculated and deposited within 90 days of year-end as defined in the regulatory agreement.
Condition: The Project didn’t deposit the full amount into the residual receipt account within 90 days of year-end. Total surplus cash at 6/30/2023 was $113,816. The Project deposited $112,602 within 90-days of year-end, however, the remaining $1,214 was not deposited until March 2024.
Questioned Costs: $1,214
Context: Reporting requirements were tested for instances of noncompliance.
Cause: Administrative error.
Effect: Out of compliance due to late deposit into residual receipt account.
Repeat Finding: No.
Recommendation: We recommend that management compute surplus cash on an annual basis and make the full deposit within 90 days after year-end as required by the regulatory agreement.
Views of Responsible Officials: See corrective action plan.