Finding Text
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year):
Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 (Project identification number 101-11198 and 2013)
Auditor non-compliance code: P-Investment of residual receipts
Finding resolution status: Completed
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2023-001: At March 31, 2023, the Corporation's residual receipts account was not invested in an interest bearing account.
Criteria: The Regulatory Agreement requires that surplus cash, as defined, be deposited into an interest bearing residual receipts account or reserve for replacement account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement.
Cause: The Corporation did not make deposits of surplus cash into an interest bearing account.
Recommendation: The Agent should transfer the residual receipts account to an interest bearing account.
Management's response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation transferred the residual receipts account to an interest bearing account on October 31, 2023.