Finding Text
Finding reference number: 2025-001
Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 122-11445 and 2020
Auditor non-compliance code: I – Failure to make required residual receipt deposit
Finding resolution status: Resolved
Universe population size: N/A
Sample size information: N/A
Statistically valid sample: No
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $69,120
Statement of condition 2025-001: The Corporation did not make the required residual receipts deposit computed at April 30, 2024 in the amount of $69,120 within 90 days of fiscal year end.
Criteria: Pursuant to the HAP contract, the residual receipts deposit due to the reserve for replacements must be deposited within 90 days of fiscal year end.
Effect: The Corporation is not in compliance with the HAP contract.
Cause: The Corporation did not make the required deposit within 90 days of fiscal year end.
Recommendation: Management should implement a system to ensure the required residual receipts deposit is made within 90 days of fiscal year end.
Management's response: Agree. Management made the required residual receipts deposit on January 8, 2025.