Finding 392949 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-10

AI Summary

  • Core Issue: The Corporation failed to deposit $10,490 into the residual receipts account within the required 90 days after the fiscal year end.
  • Impacted Requirements: This non-compliance violates the terms of the Section 223(f) Regulatory Agreement.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts in future fiscal years to avoid similar issues.

Finding Text

Assistance Listing No. title and number (federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.134 (Section 207 loan identification number 054-11074, year 2023) Auditor non-compliance code: B – Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: N/A Sample size information: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,490 Statement of condition #2023-001: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $10,490 was not deposited within 90 days of the fiscal year end. Criteria: The Corporation is required to deposit in the residual receipts account an amount per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts within 90 days of the fiscal year end. Effect or potential effect: The Corporation is not in compliance with the terms of the Section 223(f) Regulatory Agreement. Cause: Management oversight. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: May 23, 2023 Reporting views of responsible officials: Management concurs with the finding and recommendation. Management deposited $10,490 into the residual receipts fund on May 23, 2023. No further action is required.

Corrective Action Plan

Finding #2023-001 Comments on Findings and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $10,490 was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $10,490 into the residual receipts fund on May 23, 2023. No further action is required.

Categories

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 969391 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $1.55M
14.195 Section 8 Housing Assistance Payments Program $474,427
14.191 Multifamily Housing Service Coordinators $87,115