Assistance Listing (Federal award identification number and year): Mortgage Insurance for the
Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing 14.155 (073-
11337-REFI and 2007)
Auditor non-compliance code: B-Failure to make required residual receipt deposit
Finding resolution status: Cleared
Universe population size: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,157
Statement of condition 2023-001: The required deposit per the June 30, 2022 Computation of
Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund
within 90 days after the fiscal year end.
Criteria: Pursuant to Section 2(c) of the Regulatory Agreement surplus cash is required to be
deposited into a separate residual receipts fund within 90 days after the fiscal year end.
Effect: The Community is not in compliance with the terms of the Regulatory Agreement.
Cause: Due to an oversight by the management agent, the surplus cash deposit was not made until
June 6, 2023.
Recommendation: Management should ensure that surplus cash is deposited to the residual receipts
account within 90 days after the fiscal year end.
Management's response: Agree. On June 6, 2023, the management agent transferred $6,157 from
operating cash to the residual receipts account. No further action is required.
Assistance Listing (Federal award identification number and year): Mortgage Insurance for the
Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing 14.155 (073-
11337-REFI and 2007)
Auditor non-compliance code: G - Unauthorized loans from project funds
Finding resolution status: Cleared
Universe population size: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $12,960
Statement of condition 2023-002: During the year ended June 30, 2023, the Community paid for
payroll expenditures on behalf of other communities managed by the Agent totaling $12,960.
Criteria: Pursuant to Section 9(b) of the Regulatory Agreement, neither the Community nor its agents
shall make any payments for services, supplies or materials unless such services are actually rendered
for the community or such supplies or materials are delivered to the Community and are reasonably
necessary for its operation.
Effect: The Corporation is not in compliance with the Regulatory Agreement. The Community's
operating account has been reduced by $12,960.
Cause: The Community paid payroll expenditures on behalf of other communities managed by the
Agent due to a payroll processing error.
Recommendation: The other communities managed by the Agent should reimburse the Community
in the amount of $12,960.
Management's response: Agree. On September 6, 2023, the Agent has issued a credit to the
Community of $12,960.
Assistance Listing (Federal award identification number and year): Mortgage Insurance for the
Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing 14.155 (073-
11337-REFI and 2007)
Auditor non-compliance code: B-Failure to make required residual receipt deposit
Finding resolution status: Cleared
Universe population size: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,157
Statement of condition 2023-001: The required deposit per the June 30, 2022 Computation of
Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund
within 90 days after the fiscal year end.
Criteria: Pursuant to Section 2(c) of the Regulatory Agreement surplus cash is required to be
deposited into a separate residual receipts fund within 90 days after the fiscal year end.
Effect: The Community is not in compliance with the terms of the Regulatory Agreement.
Cause: Due to an oversight by the management agent, the surplus cash deposit was not made until
June 6, 2023.
Recommendation: Management should ensure that surplus cash is deposited to the residual receipts
account within 90 days after the fiscal year end.
Management's response: Agree. On June 6, 2023, the management agent transferred $6,157 from
operating cash to the residual receipts account. No further action is required.
Assistance Listing (Federal award identification number and year): Mortgage Insurance for the
Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing 14.155 (073-
11337-REFI and 2007)
Auditor non-compliance code: G - Unauthorized loans from project funds
Finding resolution status: Cleared
Universe population size: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $12,960
Statement of condition 2023-002: During the year ended June 30, 2023, the Community paid for
payroll expenditures on behalf of other communities managed by the Agent totaling $12,960.
Criteria: Pursuant to Section 9(b) of the Regulatory Agreement, neither the Community nor its agents
shall make any payments for services, supplies or materials unless such services are actually rendered
for the community or such supplies or materials are delivered to the Community and are reasonably
necessary for its operation.
Effect: The Corporation is not in compliance with the Regulatory Agreement. The Community's
operating account has been reduced by $12,960.
Cause: The Community paid payroll expenditures on behalf of other communities managed by the
Agent due to a payroll processing error.
Recommendation: The other communities managed by the Agent should reimburse the Community
in the amount of $12,960.
Management's response: Agree. On September 6, 2023, the Agent has issued a credit to the
Community of $12,960.