How do projects determine what amount to report on Line 9 of the Surplus Cash Computation, and does supporting documentation need to be provided?
Line 9 of the Surplus Cash Computation is one of the few items that is actually not a Balance Sheet entry. For example, if the taxes were due December 31 and they were in the amount of $10,000 and the mortgage company had only escrowed $9,000, they would then have a deficiency in the escrow of $1,000. This $1,000 could then be entered on Line 9 of the Surplus Cash Computation. The calculation to support the Deficient Tax Insurance or MIP Escrow Deposits amount on Line 9 of the Computation of Surplus Cash, Distributions, and Residual Receipts form is required to be provided in the notes to financial statements or other supplementary data section. Beginning in 2004, any amount estimated on line 9 will be required to be sent to MHDC to be deposited in your escrow account.
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