Finding 1238433 (2025-001)

Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, 122-11373 and 1988 Auditor non-compliance code: B – Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $3,319 Statement of condition 2025-001: The Corporation's required deposit of $3,319 to the residual receipts account per the December 31, 2024 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal period ends. Effect: The Corporation is not in compliance with terms of the Regulatory Agreement. Cause: Management did not deposit the funds timely. Recommendation: Management should make all required residual receipt deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end. Management's response: Management concurs with the finding and the auditor's recommendation. Management deposited $3,319 into the residual receipts fund on May 7, 2026. No further action is required.