Finding Text
Finding reference number: #2022-002 Assistance Listing title and number (federal award identification and year): Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing No. 14.164 (Section 201 loan identification number 109-SH-005, year 1991) Auditor non-compliance code: B - Failure to make required residual receipt deposit Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal Agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $27,293 Statement of condition #2022-002 (Assistance Listing 14.164): The Corporation's required deposit into the residual receipts account of $27,293 per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate residual receipts fund within 90 days after the fiscal period end. Effect: The Corporation is not in compliance with the terms of the Section 202 Regulatory Agreement or communications that the Corporation has received from HUD. Cause: The Corporation did not make the required deposit within 90 days of the fiscal year end. Recommendation: Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Completion date: February 16, 2022 Management response: Agree. Management deposited $27,293 into the residual receipts fund on February 16, 2022. No further action is required.