Finding Text
S3800-010 Finding Reference Number 2024-001
S3800-011 Title and Assistance Listing 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 Resolved
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 NoS3800-020 Criteria
The Organization must comply with HUD guidelines regarding monthly replacement reserve deposits.
S3800-030 Statement of Condition
The Organization’s replacement reserve was underfunded by $7,760 as of March 31, 2024.
S3800-032 Cause
Mortgagee did not increase payments as required by HUD. Organization paid amount as stated on monthly mortgage statement, and prior year delinquent amount.
S3800-033 Effect or Potential Effect
Organization was not in compliance with HUD guidelines for replacement reserve deposit requirements.
S3800-035 Auditor Non-Compliance Code N – Reserve for Replacement
S3800-040 Questioned Costs $7,760
S3800-045 Reporting Views of Responsible Officials
Management agrees with the finding and has deposited the deficiency.
S3800-037 FHA/Contract Number 12711240
S3800-038 Questioned Costs $7,760
S3800-080 Recommendation
Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow in the correct amount.
S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Management is correcting the deficiency.
S3800-130 Response Indicator Agree
S3800-140 Completion Date 05/14/2024
S3800-150 Response
Management agrees with the finding and is in the process of replenishing the funds.
S3800-160 Contact Person First Name Thomas
S3800-170 Contact Person Middle Initial E.
S3800-180 Contact Person Last Name Anderson