MONARCH PLACE APARTMENTS FHA#115-11441

REFERENCE NUMBER: 2019-001 FEDERAL PROGRAM: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing Section 223(F) CFDA NUMBER: 14.155 NAME OF FEDERAL AGENCY: U.S. Department of Housing & Urban Development (HUD) COMPLIANCE REQUIREMENT: Special Test and Provisions Criteria In accordance with the Project?s Regulatory Agreement and federal guidelines, within 60 days after the end of each fiscal year, any residual receipts realized from the operation of the property shall be deposited in a separate residual receipts account in a federally insured depository. Condition Based on the calculation of residual receipts made in accordance with HUD guidelines, as of June 30, 2019, we noted that the Project had $7,879 in surplus cash and the amount was not deposited in bank within 60 days after the end of the fiscal year. Questioned Costs: $0 Effect The Project did not appear to be following requirements in Regulatory Agreement regarding residual receipts. Recommendation We recommend that the Project improve its procedures to ensure that any residual receipts computed as of 6/30/2019 are deposited in a separate residual receipts account within 60 days following the end of the fiscal year as required by HUD. The residual receipts amount computed as of June 30, 2019 should be deposited as required as soon as possible. View of Response Official Client acknowledges finding.