Finding Text
S3800-010 Finding Reference Number 2023-001
S3800-011 Title and CFDA Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, 14.155
S3800-015 Type of Finding Federal Award Finding
S3800-016 Finding Resolution Status Resolved
S3800-017 Information on Universe Population Size N/A
S3800-018 Sample Size Information N/A
S3800-019 Identification of Repeat Finding and Reference Number NoS3800-020 Criteria
The Organization must comply with HUD guidelines regarding monthly replacement reserve deposits.
S3800-030 Statement of Condition
The Organization’s replacement reserve was underfunded by $17,988 as of March 31, 2023.
S3800-032 Cause
Mortgagee did not increase payments as required by HUD. Organization paid amount as stated on monthly mortgage statement.
S3800-033 Effect or Potential Effect
Organization was not in compliance with HUD guidelines for replacement reserve deposit requirements.
S3800-035 Auditor Non-Compliance Code N – Reserve for Replacement
S3800-040 Questioned Costs $17,988
S3800-045 Reporting Views of Responsible Officials
Management agrees with the finding and has deposited the deficiency.
S3800-037 FHA/Contract Number 12711240
S3800-038 Questioned Costs $17,988
S3800-080 Recommendation
Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow.
S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Management has corrected the deficiency.
S3800-130 Response Indicator Agree
S3800-140 Completion Date 05/31/2023
S3800-150 Response
Management agrees with the finding and has replenished the funds.