Audit 378168

Assistance Listing (Federal award identification number and year): Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 101-11198, 2013) Auditor non-compliance code: H - Unauthorized distribution of project assets. Finding resolution status: Cleared Universe population size: 380 cash disbursements Sample size information: 25 cash disbursements. Statistically valid sample: N/A Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $819 Statement of condition 2025-001: During the year ended March 31, 2025, the Corporation paid two invoices totaling $819 on behalf of related entities. Criteria: The Regulatory Agreement does not permit the Corporation to make any distributions or payments on behalf of other entities. Effect: The Corporation is not in compliance with the terms of the PRAC. At March 31, 2025, the Property's cash position is understated by $819. The computation of surplus cash, distributions, and residual receipts has been updated to include this amount so as not to understate the deposit due to residual receipts. Cause: The Corporation paid two invoices on behalf of related entities. Recommendation: The Corporation should request reimbursement from the related entities. Management's response: Agreed. Management concurs with the finding and the auditor's recommendation. The Corporation has received repayments from the related entities as of July 21, 2025.