Finding 1161092 (2025-001)

FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Resolved. Information on Universe Population Size: All replacement reserve deposits for the year ended March 31, 2025. Sample Size Information: All replacement reserve deposits for the year ended March 31, 2025. 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 underfunded the account by $341. Cause: An increase in funding was not implemented. Effect or Potential Effect: Deficiently funded 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 has been adopted. Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion date: 04/30/2025 Response: Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.