Finding Text
Assistance Listing (Federal award identification number and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: Resolved Universe population size: 12 monthly deposits to the reserve for replacements account. Sample size information: 12 monthly deposits to the reserve for replacements account. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $1,205 Statement of condition #2025-002: The Corporation did not make the total required reserve for replacement deposits during the year ended June 30, 2025, which resulted in the reserve for replacements account being underfunded by $1,205 as of June 30, 2025. Criteria: Pursuant to the Section 202 Regulatory Agreement and communications from HUD, the Corporation is required to make monthly deposits into a separate reserve for replacements account in the amounts specified by HUD. Effect: The Corporation is not in compliance with the Section 202 Regulatory Agreement and communications from HUD. The reserve for replacements account is underfunded by $1,205. Cause: The Corporation was required to make monthly reserve for replacement deposits of $1,360. The Corporation did not make the full monthly deposit of $1,360 for one month during the year. Recommendation: The management agent should transfer $1,205 from the operating account in order to bring the reserve for replacements account current. Completion date: August 26, 2025 Management response: Management agrees with the recommendation. Management transferred $1,205 from the operating account in order to bring the reserve for replacements account current on August 26, 2025. No further action is required.