Finding 664476 (2022-001)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-10-20
Audit: 78098
Organization: Nutfield Heights, INC (NH)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: The required monthly deposit to the replacement reserve account was short by $2,760 for the entire year.
  • Impacted Requirements: HUD mandates a specific monthly deposit, which was not met due to delays from the mortgage company.
  • Recommended Follow-Up: Management should bill the mortgage company for the shortfall, adjust the monthly deposit amount, and ensure timely future increases.

Finding Text

Finding 2022-001: Federal program - Section 223(f) Insured Mortgage: Criteria - HUD requires a specified monthly amount be deposited to the replacement reserve account; Condition - the required amount was deficient for twelve out of twelve months during the year for a total of $2,760 deficient; Cause - the mortgage company did not increase the required amount due in a timely manner; Recommendation - management should contact the mortgage company, request the shortfall be billed, increase the required monthly amount required and assure any future increase are made timely. Response: Management will contact the mortgage company, remit the shortfall amount, pay the required monthly amount due and assure any future increases are made.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $675,720
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $516,111