Finding 948737 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-05

AI Summary

  • Core Issue: The Project underfunded the Replacement Reserve account by $175 due to delays in making required monthly deposits.
  • Impacted Requirements: Monthly deposits to the Replacement Reserve account must be made on time as per HUD regulations.
  • Recommended Follow-Up: Implement procedures to ensure timely deposits and submit the retroactive amount by December 2023.

Finding Text

FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2023. Sample Size Information: Required replacement reserve deposits for the year ended June 30, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $175. Cause: The Project did not implement the required monthly deposit into the replacement reserve account increase in a timely manner effective May 1, 2023. Effect or Potential Effect: Deficiently funded replacement reserve. Auditor Non-Compliance Code: N – Reserve for Replacements Deposits Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Response Indicator: Agree. Completion Date: 06/30/2024 Response: Management nor the lender received the approved 9250 dated 06.06.2023 until 10.26.2023. Management will submit the retro amount of $174.84 in December 2023.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.74M
14.195 Section 8 Housing Assistance Payments Program $967,719
14.195 Covid-19 Section 8 Housing Assistance Payments Program $8,194