Finding Text
Assistance Listing (Federal award identification number and year): Mortgage Insurance for the
Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing 14.155 (073-
11337-REFI and 2007)
Auditor non-compliance code: B-Failure to make required residual receipt deposit
Finding resolution status: Cleared
Universe population size: N/A
Sample size information: N/A
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,157
Statement of condition 2023-001: The required deposit per the June 30, 2022 Computation of
Surplus Cash, Distributions and Residual Receipts was not deposited to the residual receipts fund
within 90 days after the fiscal year end.
Criteria: Pursuant to Section 2(c) of the Regulatory Agreement surplus cash is required to be
deposited into a separate residual receipts fund within 90 days after the fiscal year end.
Effect: The Community is not in compliance with the terms of the Regulatory Agreement.
Cause: Due to an oversight by the management agent, the surplus cash deposit was not made until
June 6, 2023.
Recommendation: Management should ensure that surplus cash is deposited to the residual receipts
account within 90 days after the fiscal year end.
Management's response: Agree. On June 6, 2023, the management agent transferred $6,157 from
operating cash to the residual receipts account. No further action is required.