Audit 327185

Assistance Listing (Federal award identification number and year): Mortgage insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 073-11817 and 2015) Auditor non-compliance code: H- Unauthorized distribution of project assets Finding resolution status: Cleared. Universe population size: The universal population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $65,142 Statement of condition 2024-001: During the year ended July 31, 2024, the Property transferred funds in excess of the surplus cash calculated at July 31, 2023. Criteria: Paragraph 14(d) of the Regulatory Agreement states that distributions may be made up to the calculated surplus cash amount, as defined. Effect: The Corporation is not in compliance with the HUD requirements. At July 31, 2024, the Property's operating account is underfunded by $65,142. This amount has been considered in the computation of surplus cash, distributions and residual receipts at July 31, 2024. Cause: Management inadvertently transferred $65,142 more cash to the entity cash account during the year ended July 31, 2024 than what was allowed by HUD. Recommendation: Management should reimburse the Property's operating account in the amount of $65,142. Management's response: Agree. On October 18, 2024, management reimbursed the Property's operating account.

Assistance Listing (Federal award identification number and year): Mortgage insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 073-11817 and 2015) Auditor non-compliance code: H- Unauthorized distribution of project assets Finding resolution status: Cleared. Universe population size: The universal population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $65,142 Statement of condition 2024-001: During the year ended July 31, 2024, the Property transferred funds in excess of the surplus cash calculated at July 31, 2023. Criteria: Paragraph 14(d) of the Regulatory Agreement states that distributions may be made up to the calculated surplus cash amount, as defined. Effect: The Corporation is not in compliance with the HUD requirements. At July 31, 2024, the Property's operating account is underfunded by $65,142. This amount has been considered in the computation of surplus cash, distributions and residual receipts at July 31, 2024. Cause: Management inadvertently transferred $65,142 more cash to the entity cash account during the year ended July 31, 2024 than what was allowed by HUD. Recommendation: Management should reimburse the Property's operating account in the amount of $65,142. Management's response: Agree. On October 18, 2024, management reimbursed the Property's operating account.