Finding Text
Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 207/223(f)) Finding Resolution Status - Resolved Information on Universe and Population Size - Population includes prior year surplus cash Sample Size Information - N/A Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Corporation should deposit surplus cash within the time frame specified in the FRAG Guide. Statement of Condition - The Corporation deposited prior year surplus cash twenty five days after the deadline as stated in the Real Estate Assessment Center's Summary of Financial Reporting and Auditing Guidance for HUD (FRAG Guide) under Section 2.8. Cause - The Corporation failed to monitor the cash requirements of the residual receipts account as specified by the FRAG Guide. Effect or Potential Effect - The residual receipts account was not funded in accordance with the FRAG Guide. Auditor Noncompliance Code - B - Failure to make required residual receipt deposits Reporting Views of Responsible Officials - Management agrees with the finding as reported. Context - The Corporation did not deposit prior year surplus cash within the time frame specified in the FRAG Guide. Recommendation - Surplus cash deposit amounts should be deposited within the specified time frame as required by the FRAG Guide. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should deposit surplus cash within the time frame required by the FRAG Guide. Response Indicator - Agree Completion Date - October 23, 2024 Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $13,495 into residual receipts on October 23, 2024.