HUGHES NEIGHBORHOOD HOUSING, INC.

Finding No. 2020-001 ? Failure to deposit Surplus Cash Timely Program CFDA #14.181 Supportive Housing for Persons with Disabilities Type of Finding Federal Award Finding Finding Resolution Status Resolved Information on Universe Population Size 1 Sample Size Information 1 Identification of Repeat Finding and Finding Reference Number N/A Criteria The regulatory agreement requires, within 90 days after fiscal year-end, any residual receipts (Surplus Cash) realized from operations of the mortgage property shall be deposited in a separate residual receipts account. Statement of Condition The surplus cash deposit was not made within 90 days from year-end, 6/30/2019 (September 30,2019) Cause The cause of the delay in deposit was due to management oversight. Effect or Potential Effect The requirement to deposit surplus cash within 90 days of the fiscal year end was not met. Auditor Non-Compliance Code N ? Residual receipts (Surplus Cash) deposit Questioned Costs There were no known questioned costs. Reporting Views of Responsible Officials Auditee agrees that no surplus cash deposit was made to the residual receipts for the fiscal year ended June 30, 2019, when required within 90 days after fiscal year-end to deposit is due per the regulatory agreement. Context During compliance testing of the residual receipts account for the 2019 audit, There was no deposit for the surplus cash within 90 days after fiscal year end. Recommendation Auditor recommends that the Auditee make the required FYE19 surplus cash deposit of $1,943 into the established Wells Fargo residual receipts account, and established a system to ensure the surplus cash deposit is done timely in the future. Auditor notes deposit was not made during the audit period. Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations The finding represents an isolated instance of management oversight. Response Indicator Agree Completion Date Deposit was made 2/5/2020. Response See corrective action plan.