Audit 368702

Finding reference number: #2024-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: N – Special Tests and Provisions Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $30,975 Statement of condition of #2024-001 (CFDA No. 14.134): The Corporation did not make all required reserve for replacements deposits during the year ended December 31, 2024. Criteria: The Regulatory Agreement requires the Corporation to make monthly deposits/payments to a reserve for replacements fund under the control of HUD. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not made all required reserve for replacements payments. Recommendation: The Corporation should make a deposit of $30,975 to the reserve for replacements fund. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will make the deposit to fully fund the reserve for replacements fund.