EIN: 821825886
UEI: QPQNQJ18HSP3
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 23, 2020. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 23, 2021 (1980 days ago).
What is a management decision? →2019-001 ? Significant Deficiency and Noncompliance ? Required Payments to General Operating Reserve Department of Housing and Urban Development CFDA Number 14.126 ?Mortgage Insurance - Cooperative Projects Significant Deficiency and Noncompliance Category of Finding ? Special Tests and Provisions Criteria - Section three of the Cooperative?s regulatory agreement with HUD requires monthly payments to a General Operating Reserve. Deposits are 3% of member carrying charges until the balance of the reserve exceeds 15% of current annual member carrying charges. The required deposit is then reduced to 2% of monthly charges until the balance of the reserve exceeds 25% of annual carrying charges. Condition - Deposits to the segregated account for the General Operating Reserve during the year ended December 31, 2019 were $37,168 less than the required amount for the period. Cause - The Cooperative inadvertently omitted making monthly deposits to the General Operating Reserve in 2019. The control in place to assure the required monthly deposits were made failed to work; however, a monitoring control identified the error and corrected the deficiency prior to the conclusion of the audit. Effect - The Cooperative was out of compliance with their HUD regulatory agreement at December 31, 2019, because the General Operating Reserve was underfunded. Recommendation - We recommend that the Cooperative implement a control process to ensure adherence to the regulatory agreement and make the required monthly deposits to the General Operating Reserve. Auditee?s comment - On March 9, 2020, prior to the conclusion of the audit, the Cooperative made a deposit of $47,626 to the General Operating Reserve to fund the reserve to its proper balance. The CFO of the management agent will implement a process to ensure deposits are made as required by the regulatory agreement. Status - Resolved Auditor?s non-compliance code - Z - Other Responsible party for corrective action - Jesse Lambrecht, CFO of Paramark (Management Agent)
Show full finding ▾Hide full finding ▴2019-001 ? Significant Deficiency and Noncompliance ? Required Payments to General Operating Reserve Department of Housing and Urban Development CFDA Number 14.126 ?Mortgage Insurance - Cooperative Projects Significant Deficiency and Noncompliance Category of Finding ? Special Tests and Provisions Criteria - Section three of the Cooperative?s regulatory agreement with HUD requires monthly payments to a General Operating Reserve. Deposits are 3% of member carrying charges until the balance of the reserve exceeds 15% of current annual member carrying charges. The required deposit is then reduced to 2% of monthly charges until the balance of the reserve exceeds 25% of annual carrying charges. Condition - Deposits to the segregated account for the General Operating Reserve during the year ended December 31, 2019 were $37,168 less than the required amount for the period. Cause - The Cooperative inadvertently omitted making monthly deposits to the General Operating Reserve in 2019. The control in place to assure the required monthly deposits were made failed to work; however, a monitoring control identified the error and corrected the deficiency prior to the conclusion of the audit. Effect - The Cooperative was out of compliance with their HUD regulatory agreement at December 31, 2019, because the General Operating Reserve was underfunded. Recommendation - We recommend that the Cooperative implement a control process to ensure adherence to the regulatory agreement and make the required monthly deposits to the General Operating Reserve. Auditee?s comment - On March 9, 2020, prior to the conclusion of the audit, the Cooperative made a deposit of $47,626 to the General Operating Reserve to fund the reserve to its proper balance. The CFO of the management agent will implement a process to ensure deposits are made as required by the regulatory agreement. Status - Resolved Auditor?s non-compliance code - Z - Other Responsible party for corrective action - Jesse Lambrecht, CFO of Paramark (Management Agent)
The Cooperative will make the required deposits to the General Operating Reserve.
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