Finding 6647 (2023-001)

Condition - The surplus cash for the year ended March 31, 2021 in the amount of $7,133 was not deposited into the residual receipts account for the years ended March 31, 2023 and 2022. Criteria - Non-profit owners and owners of limited distribution projects shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year in accordance with compliance requirements associated with Assistance Listing Number 14.155 - Mortgage Insurance for Refinancing of Existing Multifamily Housing Projects. Effect - The Company was not in compliance with the above HUD regulations. Cause - Surplus cash was not deposited into the residual receipts account. Repeat Finding - This is a repeat of finding 2022-001 from the prior year. Recommendation - We recommend that the surplus cash in the amount of $7,133 be deposited into the residual receipts account as soon as possible. Management’s Reply - Management understands HUD's requirements for depositing surplus cash into the residual receipts account and will deposit the delinquent deposit of $7,133 into the residual receipts by March 31, 2024.