Finding 1451 (2023-002)

S3800-010 Finding Reference Number 2023-002 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 In Process 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 No S3800-020 Criteria The Organization must comply with HUD guidelines regarding residual receipts deposits. S3800-030 Statement of Condition Prior year required residual receipts deposit was not made. S3800-032 Cause Staff training S3800-033 Effect or Potential Effect The Organization was not in compliance with HUD guidelines for residual receipts deposit requirements. S3800-035 Auditor Non-Compliance Code S3800-040 Questioned Costs $219,383 S3800-045 Reporting Views of Responsible Officials Management agrees with the findings, and funds will be included in current year surplus cash deposit calculations. S3800-037 FHA/Contract Number 12711240S3800-038 Questioned Costs $219,383 S3800-080 Recommendation Management should have procedures in place to ensure the timely deposit to residual receipts account. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Funds will be included in the residual receipts deposit for the current year. S3800-130 Response Indicator Agree S3800-140 Completion Date 06/30/2023 S3800-150 Response Management agrees with the findings, and funds will be included in current year surplus cash deposit calculations.