Finding Text
Findings reference number: 2023-002 Title and AL Number of Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 223(f)), AL 14.155 Type of finding: Compliance Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No. Criteria: The regulatory agreement stipulates that a monthly deposit be made to the Reserve for Replacement Account of the amount determined by HUD. Condition: HUD approved an increase to the monthly required deposit to the Reserve for Replacement Account from $2,600 to $2,626 effective August 1, 2023. However, the increased amount was drafted beginning in September 2023. Cause: This was an oversight. Effect: The Reserve for Replacement Account has a shortfall of $26. Noncompliance code: N. Questioned costs: N/A. Reporting views of officials: This was an inadvertent error in timing and the correct amount was drafted one month late. Contract number: 114-11392 Context: The shortfall was noted at the time of performing the audit. Recommendation: Management should make an additional deposit of $26 to cover the shortfall. Auditors' summary of auditee's comments: They are in agreement. Completion date: 12/31/2024 Response: Management will issue a check for $26 to the lender for credit to the Reserve for Replacement Account to cover the shortfall.