Finding Text
Finding reference number: #2023-004
Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155
Identification numbers Property Year of award
101-11323 1221 Pearl 2022
Auditor non-compliance code: A – Activities Allowed or Unallowed
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-004 (continued)
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $28,619
Repeat Finding: No
Statement of Condition #2023-004: During the year ended March 31, 2023, the Partnership made distributions of $28,619 in excess of surplus cash.
Criteria: Pursuant to the Regulatory Agreement, the Partnership shall not make, or receive and retain, any distribution of assets or any income of any kind of the project except surplus cash.
Effect: The payment of the distribution without surplus cash could result in the Partnership not having enough funds to cover operations.
Cause: Management distributed an amount greater than the total of the surplus cash amount.
Recommendation: Management should limit the payment of distributions to surplus cash.
Completion Date: March 31, 2023
Management Response: Agreed. Management will limit future distributions to surplus cash. Surplus cash is positive at March 31, 2023, no further action is needed.