Finding Text
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Section 207 loan identification number 054-11089 , year 2022) Auditor non-compliance code: N - Reserve for Replacement Deposits Finding resolution status: Unresolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $269 Statement of condition #2022-001 (Assistance Listing. 14.155): The Corporation did not increase the monthly reserve for replacement deposits as required by HUD during the year ended December 31, 2022. Criteria: Pursuant to the Section 223(f) 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 terms of the Section 223(f) Regulatory Agreement and communications from HUD. As of December 31, 2022, the reserve for replacements is underfunded by $269. Cause: The lender was not informed of the reserve for replacement deposit increase. Recommendation: The management agent should transfer funds of $269 from the operating account to bring the reserve for replacements account current and communicate with the lender to ensure deposit increases are being made. Completion date: December 31, 2023. Management's response: Agree.