Finding Text
FINDING No. 2023-001: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 September 30, 2023.
Sample Size Information:All replacement reserve deposits for the year ended September 30, 2023.
Identification of Repeat Finding and Finding Reference Number:No.
Criteria:In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account.
Statement of Condition:The Project underfunded the account by $332.
Cause:An increase in funding was not implemented.
Effect or Potential Effect:Deficiently funded reserve for replacement account.
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:Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month.
Response Indicator:Agree.
Completion Date:09/30/2024
Response:Deposits are made to the replacement reserves on a monthly basis. A new checklist is being implemented to ensure the accuracy of the amounts and completeness of the transfers.