Audit 294333

Finding Type ‑ Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program ‑ U.S. Department of Housing and Urban Development ‑ Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects (ALN #14.155) Finding Resolution Status ‑ Resolved Information on Universe and Population Size ‑ N/A Sample Size Information ‑ N/A Identification of Repeat Finding and Finding Reference Number ‑ N/A Criteria ‑ The Organization should deposit surplus cash within the time frame specified in the FRAG Guide Statement of Condition ‑ The Organization deposited prior year surplus cash 139 days after the deadline, as stated in the Real Estate Assessment Center’s Summary of Financial Reporting and Auditing Guidance for HUD (the "FRAG Guide") under Section 2.8. Cause ‑ The Organization failed to monitor the cash requirements of the residual receipts account as specified by the FRAG Guide. Effect or Potential Effect ‑ The residual receipts account was not funded timely in accordance with the FRAG Guide. Auditor Noncompliance Code ‑ B ‑ Failure to make required residual receipt deposits Reporting Views of Responsible Officials ‑ Management is aware of the requirement to deposit surplus cash within 90 days after the fiscal year end. Noncompliance was addressed by depositing the surplus cash amount of $10,197 on February 14, 2023. Recommendation ‑ The surplus cash deposit amount should be deposited to the residual receipts account within the specified time frame required by the FRAG Guide. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations ‑ Management should deposit surplus cash within the time frame required by the FRAG Guide. Response Indicator ‑ Agree Completion Date ‑ February 14, 2023 Response ‑ Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $10,197 into residual receipts on February 14, 2023.

Finding Type ‑ Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program ‑ U.S. Department of Housing and Urban Development ‑ Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects (ALN #14.155) Finding Resolution Status ‑ Resolved Information on Universe and Population Size ‑ Tenant move‑outs during the year ended June 30, 2023 Sample Size Information ‑ Two samples were selected from a total of eight move‑outs during the year. Identification of Repeat Finding and Finding Reference Number ‑ N/A Criteria ‑ HUD requires the Organization to refund the security deposit to tenants within 30 days of the move out. Statement of Condition ‑ The Organization failed to refund the security deposit to a tenant within 30 days of the tenant's move‑out date. Cause ‑ The Organization failed to monitor the deposit refund requirements for the security deposits as specified by the Regulatory Agreement. Effect or Potential Effect ‑ The tenant did not receive the security deposit refund until 41 days after the move‑out date. Auditor Noncompliance Code ‑ M ‑ Security deposits Reporting Views of Responsible Officials ‑ Management is aware of the requirement to refund the security deposit within 30 days of a tenant's move‑ out date and agrees there should be a timely reconciliation control implemented. Recommendation ‑ The Organization should implement internal controls to properly refund any tenant's security deposit within 30 days of the move‑out. Response Indicator ‑ Agree Completion Date ‑ December 22, 2022 Response ‑ Management acknowledges noncompliance in the current fiscal year and returned the security deposit to the tenant on December 22, 2022, 41 days after the tenant's move‑out date.

Finding Type ‑ Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program ‑ U.S. Department of Housing and Urban Development ‑ Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects (ALN #14.155) Finding Resolution Status ‑ Resolved Information on Universe and Population Size ‑ N/A Sample Size Information ‑ N/A Identification of Repeat Finding and Finding Reference Number ‑ N/A Criteria ‑ The Organization should deposit surplus cash within the time frame specified in the FRAG Guide Statement of Condition ‑ The Organization deposited prior year surplus cash 139 days after the deadline, as stated in the Real Estate Assessment Center’s Summary of Financial Reporting and Auditing Guidance for HUD (the "FRAG Guide") under Section 2.8. Cause ‑ The Organization failed to monitor the cash requirements of the residual receipts account as specified by the FRAG Guide. Effect or Potential Effect ‑ The residual receipts account was not funded timely in accordance with the FRAG Guide. Auditor Noncompliance Code ‑ B ‑ Failure to make required residual receipt deposits Reporting Views of Responsible Officials ‑ Management is aware of the requirement to deposit surplus cash within 90 days after the fiscal year end. Noncompliance was addressed by depositing the surplus cash amount of $10,197 on February 14, 2023. Recommendation ‑ The surplus cash deposit amount should be deposited to the residual receipts account within the specified time frame required by the FRAG Guide. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations ‑ Management should deposit surplus cash within the time frame required by the FRAG Guide. Response Indicator ‑ Agree Completion Date ‑ February 14, 2023 Response ‑ Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $10,197 into residual receipts on February 14, 2023.

Finding Type ‑ Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program ‑ U.S. Department of Housing and Urban Development ‑ Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects (ALN #14.155) Finding Resolution Status ‑ Resolved Information on Universe and Population Size ‑ Tenant move‑outs during the year ended June 30, 2023 Sample Size Information ‑ Two samples were selected from a total of eight move‑outs during the year. Identification of Repeat Finding and Finding Reference Number ‑ N/A Criteria ‑ HUD requires the Organization to refund the security deposit to tenants within 30 days of the move out. Statement of Condition ‑ The Organization failed to refund the security deposit to a tenant within 30 days of the tenant's move‑out date. Cause ‑ The Organization failed to monitor the deposit refund requirements for the security deposits as specified by the Regulatory Agreement. Effect or Potential Effect ‑ The tenant did not receive the security deposit refund until 41 days after the move‑out date. Auditor Noncompliance Code ‑ M ‑ Security deposits Reporting Views of Responsible Officials ‑ Management is aware of the requirement to refund the security deposit within 30 days of a tenant's move‑ out date and agrees there should be a timely reconciliation control implemented. Recommendation ‑ The Organization should implement internal controls to properly refund any tenant's security deposit within 30 days of the move‑out. Response Indicator ‑ Agree Completion Date ‑ December 22, 2022 Response ‑ Management acknowledges noncompliance in the current fiscal year and returned the security deposit to the tenant on December 22, 2022, 41 days after the tenant's move‑out date.