Finding Text
Assistance Listing (Federal award identification number and year): Mortgage insurance for
the purchase or refinancing of existing multifamily housing projects, Assistance Listing Number
14.155, 2013 (Project identification number 085-11150)
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The universe population size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $12,062
Statement of condition 2023-001: The Corporation did not make the required deposit to the
residual receipts reserve for the year ended June 30, 2023. The residual receipts reserve is
underfunded by $12,062 as of June 30, 2023.
Criteria: Pursuant to the regulatory agreement, the Corporation is required to deposit surplus cash
to the residual receipts reserve within 90 days of year end.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The residual
receipts reserve is underfunded by $12,062.
Cause: Due to anticipated cash needs, management did not make the required deposit to the residual
receipts reserve in order to meet cash flow needs anticipated for the year ended June 30, 2023.
Recommendation: Management should deposit $12,062 into the residual receipts reserve.
Completion date: June 30, 2024
Management's response: Management agrees with the finding. Management is in the process of
seeking approval from HUD to retain surplus cash in the Property's operating account.