VINE STREET MANOR HOUSING CORP

FINDING 2020-001 ? Residual Receipt Deposits Federal Agency: U.S. Department of Housing and Urban Development Pass through Entity: Not applicable Program Name: Section 202 Capital Advance Program Section 202 Project Rental Assistance Payments CFDA# and Program Expenditures: 14.157 ($5,591,000) 14.157 ($ 359,330) Award Number: N/A Federal Award Year: January 1, 2020 to December 31, 2020 Questioned Costs: None Condition Found: The December 31, 2019 surplus cash deposit of $3,923 was not made by March 31, 2020. In addition, the December 31, 2018 surplus cash deposit of $5,594 was not transferred to the residual receipts account. Criteria: According to HUD?s guidelines, a Project must deposit surplus cash due to residual receipts within ninety days after the fiscal period ends (REAC submission due date). Cause: Project management did not transfer required deposits from the operating account to the residual receipts account. Possible Asserted Effect: The Project held excess cash and did not make the required residual receipts deposit. $3,923 and $5,594 was due for the year ended December 31, 2019 and 2018, respectively. Repeat Finding: See Finding 2019-001 for a similar finding in the prior year. Recommendation: Surplus cash was recalculated at December 31, 2020. The Project should make a $14,049 deposit to residual receipts for the year ended December 31, 2020. The Project should wait for further instructions from HUD for the residual deposit that was due December 31, 2019 and 2018. In addition, procedures should be improved to ensure that surplus cash is calculated and transferred to residual receipts timely. Management Response: Management will transfer $14,049 from operating to residual receipts based on the December 31, 2020 surplus cash calculation when funds are available. The Project should wait for further instructions from HUD for the residual deposit that was due December 31, 2019 and 2018. In addition, procedures will be improved to ensure that surplus cash is calculated and transferred to residual receipts timely.

FINDING 2019-001 ? Residual Receipt Deposits Federal Agency: U.S. Department of Housing and Urban Development Pass through Entity: Not applicable Program Name: Section 811 Capital Advance Program CFDA# and Program Expenditures: 14.181 ($5,591,000) Award Number: N/A Federal Award Year: January 1, 2019 to December 31, 2019 Questioned Costs: None Condition Found: The $5,594 of surplus cash at December 31, 2018 was not deposited into the residual receipts account within ninety days. Criteria: According to HUD?s guidelines, a Project must deposit surplus cash due to residual receipts within ninety days after the fiscal period ends (REAC submission due date). Cause: Project management did not transfer the surplus cash of $5,594 from the operating account to the residual receipts account. Possible Asserted Effect: The Project held excess cash and did not make the required residual receipts deposit. $5,594 was due for the year ended December 31, 2019.Repeat Finding: There was not a similar finding in the prior year. Recommendation: Surplus cash was recalculated at December 31, 2019. The Project should make a $3,923 deposit to residual receipts for the year ended December 31, 2019. The Project should wait for further instructions from HUD for the residual deposit that was due December 31, 2018. In addition, procedures should be improved to ensure that surplus cash is calculated and transferred to residual receipts timely. Management Response: Management will transfer $3,923 from operating to residual receipts based on the December 31, 2019 surplus cash calculation. The Project should wait for further instructions from HUD for the residual deposit that was due December 31, 2018. In addition, procedures will be improved to ensure that surplus cash is calculated and transferred to residual receipts timely.

GSA_MIGRATION

GSA_MIGRATION