Finding 1136284 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-05-07

AI Summary

  • Core Issue: The Corporation failed to deposit $6,679 into the residual receipts account within the required 90 days after the fiscal year end.
  • Impacted Requirements: This non-compliance violates the HUD Regulatory Agreement, which mandates timely deposits of surplus cash.
  • Recommended Follow-up: Ensure future deposits are made on time to avoid similar issues; management has acknowledged this and made the deposit as of March 28, 2025.

Finding Text

Assistance Listing title and number (federal award identification and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Section 207 loan identification number 054-11089 , year 2024) Auditor non-compliance code: B - Failure to make required residual receipt deposit. Finding resolution status: Unresolved. Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $6,679 Statement of condition #2024-001 (Assistance Listing No. 14.134): The Corporation's required deposit into the residual receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual Receipts of $6,679 was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD Regulatory Agreement, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal year end. Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. Cause: Management oversight. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Management Response: Management agrees with the recommendation. Management deposited $6,679 to the residual receipts account on March 28, 2025. No further action is required.

Categories

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 559842 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.04M
14.195 Project Based Rental Assistance (pbra) $210,152
14.191 Multifamily Housing Service Coordinators $42,382