Finding Text
Finding reference number: 2019-002
Assistance Listing title and number (federal award identification and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; Assistance Listing No. 14.155, for the year ended December 31, 2019.
Auditor non-compliance code: B - Failure to make required residual receipt deposit
Finding resolution status: In process
Universe population size: One required deposit to the residual receipts account
Sample size information: One required deposit to the residual receipts account
Statistically valid sample: Yes
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $33,820
Statement of condition 2019-002: The Corporation did not make the required deposit to the residual receipts fund in the amount of $33,820.
Criteria: Pursuant to the Regulatory Agreement, PY surplus cash must be deposited into the residual receipts fund within 90 days after the end of the prior year.
Effect or potential effect: At December 31, 2019, the residual receipts account is underfunded by $33,820.
Cause: The Corporation did not make the required deposit to the residual receipts fund.
Recommendation: As of December 31, 2019, the Property has positive surplus cash of $76,571, which includes the required deposits and unauthorized withdrawals not made as illustrated in the 2018 and 2017 audit reports. Management should deposit $76,571 to a segregated residual receipts account in the name of the Corporation.
Completion Date: 12/31/2024
Reporting views of responsible officials: Management agrees with the recommendation and will fund the residual receipts account during 2024.