Audit 8594

Condition - The surplus cash for the year ended March 31, 2021 in the amount of $7,133 was not deposited into the residual receipts account for the years ended March 31, 2023 and 2022. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14.155 - Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects. Effect - The Company was not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Repeat Finding - This is a repeat of finding 2022-001 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $7,133 be deposited into the residual receipts account as soon as possible. Management’s Reply - Management understands HUD's requirements for depositing surplus cash into the residual receipts account and will deposit the delinquent deposit of $7,133 into the residual receipts by March 31, 2024.

Condition - The Company has not submitted Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2022. Criteria - According to Uniform Guidance compliance requirements, the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report, or 9 months after the end of the fiscal year, whichever comes first. However, due to the fact that the Federal Audit Clearinghouse was shutdown, an extension was granted for submissions to be made up to 9 months after the end of the fiscal year. Effect - The Company was not in compliance with the above Uniform Guidance compliance requirement. Cause - The submission of Form SF-SAC was not submitted due to the shutdown of the Federal Audit Clearinghouse and did not meet the 9 months after the end of the fiscal year date. Recommendation - We recommend that the submission of Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2022 be done as soon as possible. Management’s Reply - Management will submit Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2022 by March 31, 2024.

Condition - The surplus cash for the year ended March 31, 2021 in the amount of $7,133 was not deposited into the residual receipts account for the years ended March 31, 2023 and 2022. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14.155 - Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects. Effect - The Company was not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Repeat Finding - This is a repeat of finding 2022-001 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $7,133 be deposited into the residual receipts account as soon as possible. Management’s Reply - Management understands HUD's requirements for depositing surplus cash into the residual receipts account and will deposit the delinquent deposit of $7,133 into the residual receipts by March 31, 2024.

Condition - The Company has not submitted Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2022. Criteria - According to Uniform Guidance compliance requirements, the audit package and the data collection form shall be submitted 30 days after receipt of the auditor's report, or 9 months after the end of the fiscal year, whichever comes first. However, due to the fact that the Federal Audit Clearinghouse was shutdown, an extension was granted for submissions to be made up to 9 months after the end of the fiscal year. Effect - The Company was not in compliance with the above Uniform Guidance compliance requirement. Cause - The submission of Form SF-SAC was not submitted due to the shutdown of the Federal Audit Clearinghouse and did not meet the 9 months after the end of the fiscal year date. Recommendation - We recommend that the submission of Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2022 be done as soon as possible. Management’s Reply - Management will submit Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2022 by March 31, 2024.