Finding Text
Assistance Listing (Federal award identification number and year):
Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section
201 loan identification number 109-SH-005, year 1991)
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size is not applicable to the finding.
Statistically valid sample: Not applicable.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: Not applicable
Questioned costs: $41,019
Statement of condition #2024-002: The Corporation's required deposit into the residual receipts
account of $41,019, per the June 30, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period end.
Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory
Agreement or communications that the Corporation has received from HUD.
Cause: The Corporation did not make the required deposit within 90 days of the fiscal year end.
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: October 30, 2023
Management response: Management agrees with the recommendation. Management deposited
$41,019 into the residual receipts fund on October 30, 2023. No further action is required.