Audit 399272

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 223(f) Mortgage Insurance for the Refinance of Existing Multifamily Housing Projects Listing Number: 14.155 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A FAIN Number and Year: 092-11439 - 2017 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Any Surplus Cash in the project funds account (including earned interest) at the end of the fiscal year shall be deposited into a federally insured account within 90 days following the end of the fiscal year. Condition: Based on the surplus cash computation for the year ending December 31, 2024, the Project was required to deposit $8,789 into the residual receipts account by March 31, 2025. The Project only deposited $8,019, which is $770 short of the requirement. Questioned Costs: $770 Context: Management did not make required deposit into the residual receipts account by March 31, 2025. Cause: Management’s controls did not identify and ensure that the required amount was deposited into the residual receipts account within the specified time frame. Effect: The residual receipts account was underfunded by $770. Repeat Finding: N/A Recommendation: We recommend that management deposit the remaining $770 to the residual receipts account as soon as possible. Views of Responsible Officials: No disagreements with the audit finding. Management Response: Management deposited the $770 into the residual receipts account on March 12, 2026. Management will ensure moving forward that if the Project has surplus cash, the correct amount will be deposited into the residual receipts account.