CARD, INC.

Program: Federal Assistance Listing #14.195 ? Section 8 Housing Assistance Payments Criteria: The Regulatory Agreement dated April 5, 2007 with the Massachusetts Housing Finance Agency (MHFA) and HUD regulations require any surplus cash to be deposited to a residual receipts reserve to supplement the operating needs of the project within 60 days of year-end. Condition: During our audit of compliance, we identified prior year surplus cash was not deposited to the residual receipts reserve within 60 days of year-end. Context: Upon inquiry from auditors, management reviewed residual receipts activity and noted the required deposit to the residual receipt reserve was not made due to an oversight. A deposit was subsequently made into the residual receipts reserve from the prior year?s surplus cash. Effect: The Corporation made a late deposit to the residual receipts reserve in the amount of $196,322. Cause: The error resulted from an oversight in making timely deposits to the residual receipts reserve. Recommendation: We recommend that management, as part of their normal year-end closing process, implement controls to oversee timely deposits to the residual receipts reserve. Views of Responsible Officials and Planned Corrective Action: We accept the recommendation that management, as a part of our normal year-end closing process, will implement controls to oversee timely deposits to the residual receipts reserve. We made the required deposit to the residual receipts reserve on September 27, 2021.