Finding Text
Finding 2025-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Rogers Senior Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 90 days of the Project’s fiscal year-end. Condition: The required deposit of $23,541 for the year ended December 31, 2024 was not made within the 90-day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: Rogers Senior Apartments’ surplus cash was not performed timely. Effect: Rogers Senior Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Questioned costs: We consider the $23,141 of surplus cash that was not deposited to be a questioned cost. Recommendation: Rogers Senior Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Rogers Senior Apartments agrees with the finding and will make the required payment.