Finding Text
FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155
Finding Resolution Status: Unresolved.
Information on Universe Population Size:
All replacement reserve deposits for the year ended June 30, 2023.
Sample Size Information: Required replacement reserve deposits for the year ended June 30, 2023.
Identification of Repeat Finding and Finding Reference Number:
No.
Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account.
Statement of Condition: The Project underfunded the account by $175.
Cause: The Project did not implement the required monthly deposit into the replacement reserve account increase in a timely manner effective May 1, 2023.
Effect or Potential Effect: Deficiently funded replacement reserve.
Auditor Non-Compliance Code: N – Reserve for Replacements Deposits
Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted.
Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month.
Response Indicator: Agree.
Completion Date: 06/30/2024
Response: Management nor the lender received the approved 9250 dated 06.06.2023 until 10.26.2023. Management will submit the retro amount of $174.84 in December 2023.