Finding 1081194 (2024-001)

FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2024. Sample Size Information: All replacement reserve deposits for the year ended March 31, 2024. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account. Statement of Condition: The Project overfunded the account by $152. Cause: The Project made a payment in excess of funding requirements. Effect or Potential Effect: Overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion date: 03/31/2025 Response: Additional procedures have been implemented to ensure the correct amount of funding for replacement reserves is completed.