Finding Text
Finding No. 2024-001: Mortgage Insurance-Multifamily Housing Projects, Section 207/223(f); ALN 14.155
a. Statement of condition: the required deposit of surplus cash of $5,192 as of September 30, 2024 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date.
b. Criteria: Pitcher Hill Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project’s fiscal year-end.
c. Effect of condition: the project is not in compliance with the HUD regulatory agreement as it relates to the management of the residual receipts reserve.
d. Cause of condition: Pitcher Hill Apartment’s $5,192 deposit due will be paid as soon as possible.
e. Recommendation: Pitcher Hill Apartments should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement.
f. Views of responsible officials and planned corrective actions: Pitcher Hill Apartments agrees with the finding and the auditor’s recommendations have been adopted.