Finding Text
2022?001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Title: Federal Housing Administration ? Mortgage Insurance Hospitals Federal Assistance Listing Number: 14.128 Type of Finding: Other Matter Condition: The required balance of the Mortgage Reserve Fund was less than the required balance at September 30, 2022. Criteria or specific requirement: Per ?Section 21. Mortgage Reserve Fund? of the Regulatory Agreement between the Authority and HUD, the Authority is required to meet certain funding requirements in accordance with the MRF Funding schedule. Effect: The required balance of the Mortgage Reserve Fund was less than the required balance at September 30, 2022. Questioned Costs: None Cause: This was due to market volatility at the end of the year. Management did not make any withdrawals of funds at or near year-end. Recommendation: We recommend that management review funding requirements at the end of the year to ensure that the requirement to have a required balance of the Mortgage Reserve Fund is met by the Authority. Views of responsible officials and planned corrective actions: This was solely a function of market volatility in 2022. The balance was properly funded however negative market returns caused the fund to dip below the required balance as of yearend. In order to correct this, management made an additional contribution to increase the balance to the necessary amount.