Finding Text
Condition - As of December 31, 2023, Mount St. Mary's Housing Development Fund Company, Inc. was owed $11,700 for shared expenses from a related party, which were over 30 days past due.
Criteria - In accordance with HUD regulations, related party loans are not allowed without written approval from HUD.
Effect - The Company is not in compliance with its regulatory agreement with HUD.
Cause - The Company did not follow up on past due receivables from a related party.
Recommendation - The Company should collect the balance due as soon as possible.
Management's Corrective Action - In March 2024, the Company obtained the final payment to repay the $11,700 of past due receivables. Management has established a new report to monitor the shared expenses on a monthly basis and ensure timely payment of shared expenses.