Finding Text
Finding 2024-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155
Criteria: Bishop Harrison Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end.
Condition: The required deposit of $3,889 for the year ended March 31, 2023 was not made within the 60 day timeline.
Context: We reviewed the residual receipts deposits during the year.
Cause: Bishop Harrison Apartments’ surplus cash was not performed timely.
Effect: Bishop Harrison Apartments was not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve.
Recommendation: Bishop Harrison Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement.
Views of management and planned corrective action: Bishop Harrison Apartments agrees with the finding and the required payment was made after the 60-day timeline.