FAC Explorer

Finding 561178 (2024-001)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-05-21
Audit: 356787
Organization: Mayfield Memorial Apartments, Inc. 053-11245 (NC)
Auditor: Bernard Robinson & Company LLP

AI Summary

  • Core Issue: Only 4 out of 12 required monthly deposits were made to the residual receipts account, leading to noncompliance with HUD regulations.
  • Impacted Requirements: The Debt Service Savings Agreement mandates that 50% of monthly debt service savings, totaling $2,111, be deposited regularly.
  • Recommended Follow-Up: Management should prioritize funding the overdue deposits as soon as operating cash flow permits.

Finding Text

Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects (Section 223(f)/207). Statement of Condition: During the year ended December 31, 2024, only four of the required twelve monthly deposits of debt service savings were deposited into the residual receipts account. Criteria: The Debt Service Savings Agreement requires that 50% of the monthly debt service savings be deposited into the Project's residual receipts account in monthly deposits of $2,111. Effect: Noncompliance with HUD regulations. Cause: Operating cash shortfalls. Context: A test to compare actual deposits to the residual receipts account to the required deposits to the residual receipts account. During the year ended December 31, 2024, actual deposits to the residual receipts account were $8,444 and the required deposits to the residual receipts account were $25,331. Questioned Costs: N/A Recommendation: We recommend that management fund the delinquent residual receipts deposits as soon as the Project has sufficient operating cash flow. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will fund the delinquent residual receipts as operating cash flow allows.

Corrective Action Plan

MAYFIELD MEMORIAL APARTMENTS, INC. Charlotte, North Carolina CORRECTIVE ACTION PLAN April 14, 2025 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mayfield Memorial Apartments, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2024 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding - Federal Award Program Audit Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects (Section 223(f)/207). Recommendation: We recommend that management fund the delinquent residual receipts deposits as soon as the Project has sufficient operating cash flow. Action Taken: Management agrees with the finding and will fund the delinquent residual receipts deposits as operating cash flow allows. If HUD has questions regarding this action plan, please call Claudia Keene at (704)771-1696. Sincerely yours, Claudia Keene Controller Multifamily Select, Inc. Managing Agent

Categories

HUD Housing Programs Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.72M
14.195 Section 8 Housing Assistance Payments Program $369,386