Finding Text
Department of Housing and Urban Development Finding 2024-003 Section 223(f) Mortgage Insurance Program AL 14.155 Statement of Condition During the year ended September 30, 2024, management did not make the required residual receipts reserve deposit in the amount of $556,647 within 90 days of year end, as required by HUD. The
residual receipts amount was deposited on September 20, 2024. Criteria Residual receipts reserve deposits should be made within 90 days of year end. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Corporation is not in compliance with the requirements of the Regulatory Agreement. Questioned costs: None Context: N/A Identification as a repeat finding: Yes - 2022-001 Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits. Reporting Views of Responsible Officials We agree with the finding. We are reviewing our procedures to ensure this information is captured and deposits are timely made.