Finding 592988 (2022-001)

SIGNIFICANT DEFICIENCY S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; 14.155 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size Not applicable S3800-018 Sample Size Information Not applicable S3800-019 Identification of Repeat Finding and Reference Number Yes; 2021-001 S3800-020 Criteria The project must comply with HUD guidelines regarding required monthly replacement reserve deposits. S3800-030 Statement of Condition The project?s replacement reserve was underfunded by $1,862 as of September 30, 2022. S3800-032 Cause Management oversight and mortgagor failing to update monthly billing. S3800-033 Effect or Potential Effect The project is not in compliance with the program agreements. S3800-035 Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040 Questioned Costs $--- S3800-045 Reporting Views of Responsible Officials Management agrees with the finding and is in the process of funding the deficiency. S3800-037 FHA/Contract Number 12711174 S3800-038 Questioned Costs $--- S3800-080 Recommendation Management should have procedures in place to ensure that required monthly payments are remitted to the replacement reserve escrow. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations Management agrees with the finding and is in the process of funding the deficiency. S3800-130 Response Indicator Agree S3800-140 Completion Date 12/31/2022 S3800-150 Response Management agrees with the finding and is in the process of funding the deficiency. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson